The most recent NFIB biweekly webinar focused on how to get loan forgiveness for the Paycheck Protection Program
Every two weeks, NFIB experts explore a topic of great importance to small business owners. These bi-weekly webinars are free to attend and an indispensable resource for any owner looking to stay informed about federal financial assistance programs and policies.
The latest NFIB webinar featured NFIB’s Senior Legal Counsel Beth Milito and Executive Director of NFIB’s Research Center Holly Wade. They went in-depth about loan forgiveness for the Paycheck Protection Program (PPP), which countless small businesses used to weather the harshest months of the COVID-19 pandemic and government mandated shutdowns.
While PPP helped small businesses immensely, it has been criticized for being confusing thanks to vague instructions and frequent rules changes. “Frustration from borrowers and lenders were that rules for the program kept changing,” Beth told webinar attendees. “One thing I tell business owners is that when they’re online looking at resources on the PPP… check the date! You want to make sure you have the most up-to-date information.” For example, Beth mentions that as of 2021, expenses paid for by PPP loan funds are now tax-deductible.
She and Holly then explained the forgiveness process including the timing, where to apply and the criteria for loan forgiveness.
After you apply, the lender has up to 60 days to respond. If the lender approves the request, they submit their approval to the SBA, which then must confirm the forgiveness and pay off the PPP loan. The forgiven loan is not taxed, and your business can deduct qualified expenses. However, states can still tax PPP funds if they want.
If the lender denies forgiveness, you can appeal their decision. If the PPP loan is not forgiven, it becomes a loan with 1% interest to be paid off over 5 years.
Businesses can no longer apply for new PPP loans, as the program ran out of funds in May. However, there are similar COVID-related government programs such as the Employee Retention Tax Credit (ERC) and the Economic Injury Disaster Loans (EIDL).
Beth and Holly then went on on to explain what expenses are and aren’t covered by the PPP, eligible payroll costs, when to file for forgiveness, the relevant forms that need to be filled out, and more.
Afterwards, the experts gave an overview of the EIDL and the ERC, explaining the basics of these important programs and answering some frequently asked questions.
“We are committed to continuing our COVID-19 webinar series for the remainder of this year,” said Beth.
“If you have any questions in the interim, any thoughts, any subjects you’d like to see covered in a future webinar, please contact us,” added Beth. “In the meantime, join us for our next webinar on July 14.”