Here is a list of requirements. How to Calculate PPP Loan Forgiveness and Apply, Paycheck Protection Program (PPP) loan forgiveness guidelines, Filed (or will file) Schedule C with Form 1040 to the IRS to report business income, PPP Loan Forgiveness Calculation Form must submit with the application to your lender, PPP Schedule A must submit with the application to your lender, PPP Schedule A Worksheet used to determine if you meet the FTE employee headcount and pay requirements. The borrowers 24-week Covered Period begins on Monday, June 1 and ends on Sunday, November 15. Loan Forgiveness Payroll Costs FAQ 8 outlines the treatment of retirement benefits for owners, which are different from this general approach. If so how? The entire electricity bill payment is eligible for loan forgiveness (even if charges are invoiced separately), including supply charges, distribution charges, and other charges such as gross receipts taxes. With. And if youre self-employed here you put one, okay. The borrowers Covered Period runs from Monday, April 20 through Sunday, October 4. This is based on how much you spent on payroll and other eligible expenses like rent and utilities during the 24-week period. If you do not get approved for total loan forgiveness, or are denied any portion of loan forgiveness, you will need to treat the PPP loan balance as any other loan. New clients only. Kservicing put a 'temporary' pause to PPP Loan forgiveness because they are awaiting new forgiveness forms from the SBA. And then it takes you to this page where it says the form is completed. In Step 3, the borrower would multiply $1 per hour by 10 hours per week to determine the weekly salary reduction. The borrower would enter $240 in the Salary/Hourly Wage Reduction column for that employee on the PPP Schedule A Worksheet, Table 1. 1016 E Osceola Parkway, Kissimmee, FL 34744 Borrowers can apply for forgiveness at this link. <link rel="stylesheet" href="styles.84e9a0c201bffbf4fb75.css"> You click Generate, once you do that is going to take you to this page where you can view the application or download. Now remember that if you need any help with your PPP loan forgiveness application, we are providing that as a service. Loans approved on or after June 5, 2020 will be treated as a five-year loan with a 1% fixed interest rate. This free resource helps business owners apply for PPP loan forgiveness. What Happened To Buster Edwards Wife June? 550 Team Members Top-Notch Talent in Data Science, Development, Marketing and Partnerships 3 Patented Fintech Solutions The loan is due in 5 years, but you can repay early without any prepayment penalties or fees. ~10%. You can send to their customer service so that's it's documented you sent the completed form to the lender. Alright. These funds cover payroll and other approved business expenses. I couldn't be more satisfied with the service i received and timeliness of funding. Payments for business related utilities (for the distribution of electricity, gas, water, transportation, telephone, or internet access) for which service began before February 15, 2020. For example, if the borrower is using a 24-week Covered Period and received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4. K-SERVICING | PPP Loan Forgiveness Applications https://kservicingforgiveness.biz2x.com/ This free resource helps business owners apply for PPP loan forgiveness. Avoid having to start over and finish your application today. If all employees are kept on payroll, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest or utilities for up to 8 weeks after the loan is issued and up to 100% of the loan. Contact your PPP lender and complete the correct form: Download and fill out the forgiveness form 3508 EZ and send it to K servicing. I called KServicing and they've confirmed that they have retained Biz2X.com to accept Forgiveness applications. Use it to fill out a PPP forgiveness application online to send to your lender. If borrowers do not apply for forgiveness within ten months after the end of the maximum loan forgiveness covered period (24 weeks from the loan disbursement date), then PPP loan payments are no longer deferred, and borrowers must begin making loan payments to their PPP lender. Borrowers should therefore include employees who made more than $100,000 in the FTE Reduction Exception line in Table 1 of the PPP Schedule A Worksheet. You'll enjoy the same great service and security you've come to expect with your line of credit just through our new site. Nothing since except for phone calls where I get more run around. Here youre going to put the number of employees at time of the loan application. Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee) for employees whose principal place of residence is the U.S. Example: A borrowers 24-week Covered Period runs from April 20 through October 4. If you fall into one of these two categories, you may qualify for forgiveness: You must fill out the following on the standard forgiveness application: To use the PPP Forgiveness EZ Form, you must meet one of the following: Before you start to fill out your forgiveness application, you will need to have a few pieces of documentation and information ready. We make sure that our clients stay up to date with the latest changes. Kabbage, Inc., doing business as KServicing, is not affiliated with American Express. Its only eligible for people who received their loan prior to 2/27. Are Paycheck Protection Loans guaranteed by the SBA? K Servicing Forgiveness Biz2x Ups Package Car Driver Pay Progression Baby Hyacinth Macaw For Sale Get a Free Consultation! Are Paycheck Protection Loans guaranteed by the SBA? You must have made a good faith, written offer of rehire, and the employees rejection of that offer must be documented.. To apply, click the link in the email to log into the Biz2Credit platform. In this case, the salary/hourly wage reduction for that employee is zero, because the hourly wage was unchanged. Compensation is only eligible for loan forgiveness if the payments to partners are made during the Covered Period or Alternative Payroll Covered Period. This is our contact information. You'll receive an email when it is time to apply for forgiveness. The borrower may elect an Alternative Payroll Covered Period that starts on June 7 and ends on November 21 (167 days later). But if you are working under a corporation or an LLC, here you put your business EIN number. Let us assist you on your way to financial freedom. Separate payments for health insurance, retirement, or state or local taxes are not eligible for additional loan forgiveness. 1 1 3. At least you got yours. As noted, only the portion of the premiums paid by the borrower for coverage during the applicable Covered Period or Alternative Payroll Covered Period is included, not any portion paid by employees or beneficiaries or any portion paid for coverage for periods outside the applicable period. I got my first PPP thru biz2 on feb 4, 21..I just applied last week for forgiveness and it was granted in two days..they will put the info on your dashboard once 8 wks pass from date of your first ppp loan. If you do not know your NICS code that is on your corporate tax return on their first page. Payroll costs include all forms of cash compensation paid to employees, including tips, commissions, bonuses, and hazard pay. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Partner with us to reach potential merchants using our patented technology on the Biz2X platform. Email today and a Haz representative will be in touch shortly. Lenders may accept any form of Econsent or E-signature that complies with the requirements of the Electronic Signatures in Global and National Commerce Act (P.L. This video is for self-employed, or businesses that received a PPP Loan via Kabbage of $150,000 or less and now they have to complete their PPP loan application via form 3508S. Business Advisory; Business Valuation; Corporate Finance; Cash Flow Modelling; M&A Advisory; Venture Capital; Private & Public Partnerships; Owner Supervision And Internal Control So, here you put your covered period here is going to say the cover period date; this is the date that you got the funds and depending on how many weeks you put in this line, this number is going to change. General Partners: The compensation of general partners that is eligible for loan forgiveness is limited to 2.5/12 of their 2019 net earnings from self-employment that is subject to self-employment tax, which is computed from 2019 IRS Form 1065 Schedule K-1 box 14a (reduced by box 12 section 179 expense deduction, unreimbursed partnership expenses deducted on their IRS Form 1040 Schedule SE, and depletion claimed on oil and gas properties) multiplied by 0.9235. For more information on transportation utility fees, see here. Example: A borrower uses a biweekly payroll cycle. For more information on the bankruptcy cases and to view Kabbage, Inc. d/b/a KServicings electronic docket, you can visit https://omniagentsolutions.com/kservicing. State income, payroll expense, and unemployment insurance filings, Health and retirement insurance contribution documents, Documents that verify eligible interest, mortgage interest, lease or rent obligations, and utility payments before February 2020 (canceled checks, receipts, accounting statements). If nothing else I'm glad to hear Biz2Credit actually exists and is functioning. Our Partners; . C Corporations: The employee cash compensation of a C-corporation owner-employee, defined as an owner who is also an employee (including where the owner is the only employee), is eligible for loan forgiveness up to the amount of 2.5/12 of his or her 2019 employee cash compensation, with cash compensation defined as it is for all other employees. The content of these FAQs is for informational purposes only and is subject to change. Rated 4.6 out of 5 based on . Yes, the CARES Act allows for a maximum forgiveness of 8 to 24 weeks of approved costs. The preceding information and more information regarding PPP loan forgiveness can be found on the SBA website using the following link, EIDL vs PPP loans: How SBA Coronavirus Business Loans Work. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content. You also may ask the SBA to review the decision. did anyone get stuck on the 3508 form signing, I signed but still can't continue.. Any Kabbage Funding Loans or PPP loans taken prior to October 16, 2020, will continue to be serviced by KServicing. If the funds are used appropriately, business owners can apply for full loan forgiveness to have the entire amount of the loan forgiven. If the borrower did not submit its 2019 IRS Form 1040 Schedule C (or F) to the Lender when the borrower initially applied for the loan, it must be included with the borrowers forgiveness application. If you have not received forgiveness for PPP one nor PPP two, you have to do one at a time. David Magen Community Ctr Inc. Multi Specialty Health. Loans are available for up to 2.5 times of your average monthly payroll during the year preceding the application, with a maximum loan of $10 million (and 3.5 times for restaurants). Fill in the information below to request a callback from one of our experts. *Can't be combined with any other offer. Borrowers are also eligible for loan forgiveness for payments for employer state and local taxes paid by the borrowers and assessed on their compensation, and for employer retirement contributions to their employee retirement plans capped at the amount of 2.5/12 of their 2019 employer retirement contribution. The employee continued to work on a full-time basis with a full-time equivalency (FTE) of 1.0. Print this voucher and bring it with you to our offices at If the same employees hourly wage had been reduced to $14 per hour, the reduction would be more than 25%, and the borrower would proceed to Step 2. Team; Services. Only 40% of your PPP loan can be used for expenses other than payroll for certain business structures. If a borrower has an insured group health plan, insurance premiums paid or incurred during the Covered Period or Alternative Payroll Covered Period qualify as payroll costs, as long as the premiums are paid during the applicable period or by the next premium due date after the end of the applicable period. In November, a federal court ordered the SBA to release certain SBA loan data. Keep all documentation and worksheets used to fill out the application, a copy of the application and all supporting documentation for overall application details in a safe place for a minimum of six years after the loan is forgiven or paid. These are your credentials to log into the Biz2Credit platform.On your KServicing dashboard, locate the SBA loan number in the 'SBA Note' linked document on the loan overview tab on the right-hand side of the page under the SBA loan documents section.". Popular Pages The Paycheck Protection Program Loan Process with Biz2Credit Step 1 You Fill Out the PPP Application Online Step 2 Our SBA-Approved Lender Verifies Information Step 3 Upload Required Supporting Documentation Step 4 The SBA Accepts Your Application Step 5 Get Funds in Your Account After 8 Weeks Loan Forgiveness Eligibility Can Be Verified A. PPP loans can be forgiven up to 100% of principal, with no interest charges added. In this video we are going to show you how to complete your PPP forgiveness application if you got your PPP loans through Kabbage or K Servicing, and if your PPP loan is $150,000 or less. Reduction in Decisioning Times. However, we recommend waiting 24 weeks after receiving your funds to apply for forgiveness, since the SBA guidelines are still fluctuating. And basically, you log in with the email and password that you created to get the PPP loan through Kabbage. The obligations must have been in place before February 15, 2020. Employee benefits including costs for vacation, parental, family, medical, or sick leave allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit, State and local taxes assessed on compensation, For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee, Any compensation of an employee whose principal place of residence is outside of the United States, The compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary, Federal employment taxes imposed or withheld between February 15, 2020, and June 30, 2020, including the employees and employers share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees. The SBA will forgive the portion of the loan used for payroll, rent, mortgage interest or utility payments for up to 24 weeks after the loan is issued. Use our PPP Loan Forgiveness Estimator to determine how much of your loan might be forgiven, and check out the FAQs below for additional information. Youll just manage your account and repayments through the new KServicing site. If youre self-employed here, youre going to put your name here and the industry and NICS code. Tooketh about 4-5 weeks after applying f'r forgiveness. commuter benefits, HSAs), Ancillary benefits (i.e. 5.go to console on the top. Sign in 1016 E Osceola Parkway, Kissimmee, FL 34744 If you applied for forgiveness during the covered period plus ten months, loan repayments are deferred until you receive a decision on your loan forgiveness application. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content. Commands: !ShakespeareInsult, !fordo, !optout. You click that link and that will take you to the PPP forgiveness portal. Please review the instructions to the forgiveness applications for more information on which documentation you may need to submit or visit SBA.gov for more information. The borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven. To calculate how much of your loan can be forgiven, your lender will use the responses from your application to: Determine the maximum amount of possible loan forgiveness. Any loan amount not forgiven has a maximum term of two years at a fixed rate of 1% interest. K Servicing basically made a partnership with the Biz2X and you have to apply through the Biz2X portal. Took about 2-3 weeks after applying for forgiveness, Wast did approve f'r mine own ppp round 2 forgiveness through biz2x. For purposes of determining forgiveness of the borrowers PPP loan, the March 2020 renewed lease is deemed to be an extension of the original lease, which was in force before February 15, 2020. Example: A borrowers 24-week Covered Period runs from April 20 through October 4. We want to make sure you and your business are protected and get the critical funding you need during this crisis. Press question mark to learn the rest of the keyboard shortcuts. For borrowers that received a PPP loan before June 5, 2020 and elect to use an eight-week Covered Period, this cap is $15,385. If you used more than 40% on non-payroll expenses, your forgiveness amount will be reduced by the percentage of the loan you used on ineligible expenses. My loan was in May 2020 lol. Employers who did not reduce business activity because of health directives related to COVID-19. Note that forgivable cash compensation per employee is limited to $100,000 on an annualized basis. Your lender has to submit your application to the SBA within 60 days of your filing for forgiveness regardless of documentation. There's no mention of this on the SBA website, instead this is what the SBA says on their loan forgiveness page: 1. Okay, now once you have your SBA loan number you will get an email from K Servicing that email is going to look like this; as a reminder that now you can apply for forgiveness, but you cannot apply for forgiveness via K Servicing website. During the Covered Period, the employees wage was not changed, but his or her hours were reduced to 25 hours per week. The first day of the borrowers first payroll cycle that starts in the Covered Period is June 7. In no event may the Alternative Payroll Covered Period extend beyond December 31, 2020. If the loan is fully forgiven, the borrower is not responsible for any payments. The Covered Period or Alternative Covered Period for any borrower will end no later than December 31, 2020. And then you click the arrow at the bottom to move forward. The borrower pays its September electricity bill on October 16. In November, a federal court ordered the SBA to release certain SBA loan data. Beware of anyone who: Proactively contacts you and claims to be from the SBA, Requests sensitive personal information over email, Requires upfront loan payment or offers a high interest bridge loan in the interim, Charges broker fees over 3% for loans under $50,000; 2% for loans $50,000 $1,000,000; or 2.25% for loans over $1,000,000, The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8- to 24-week period after the loan is made; and.

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