If you applied for a loan through the Paycheck Protection Program (PPP), you may be eager to see if your small business qualifies for loan forgiveness. The program, which encourages companies to keep their employees on the payroll, has offered forgivable loans up to $10 million.
Today, the American Institute of CPAs (AICPA) and CPA.com released a free tool to make PPP forgiveness easier. Powered by software from Biz2Credit, an online small business lender, the new tool includes a forgiveness calculator from AICPA. The tool also has up-to-date information from the Treasury and Small Business Administration (SBA).
If you received a PPP loan, you can use the free tool, regardless of which lender provided the funding. You or your CPA may use the tool to start filling out the PPP loan forgiveness application. The website says to hold off on finishing and signing the form, though.
Once the Treasury and SBA release the complete forgiveness guidelines, the tool will offer access to these details. If you have started an application before the release, the tool will contact you. Then you can digitally sign the necessary forms and submit the required paperwork. The AICPA predicts the new tool could save you or your CPA from hours of manual work, the Journal of Accountancy reports.
While the free tool appears to be a major time-saver, there is one thing to be aware of—Biz2Credit may contact you about the tool and with “other promotional material,” according to the fine print on the tool’s website.
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Congress created the PPP to support small businesses impacted by the downturn in the economy. This program, which is part of the $2 trillion CARES Act, has already offered relief to millions of small businesses throughout the country. Small businesses may continue to apply through August 8, 2020.
