In other words, any money paid out to business owners during the covered loan period needs to be reflected here. PPP Loan Forgiveness - Form 3508S Explained. Executives at EY, Plaid, PayPal, and BlueVine explain why forgiveness of PPP loans is so tricky and how they're looking to help. Understand covered period and eligible costs. Bluevine PPP Loan Forgiveness - YouTube. 79 talking about this. my documents were just payroll expenses, you may need 941,944 or documents from payroll provider, utilities, leases rent, see sba loan forgiveness final term which probably will change … Even in the worst-case scenario, a PPP loan is still much less expensive than a typical SBA loan, which is good news for borrowers. Share. The same is true for self-employed people or those who operate a partnership and do not have a payroll. The SBA may ask to see records even if they weren’t required on the forgiveness application for up to six years after forgiveness. The EZ form is more straightforward than the long form, as the name suggests. Both will ask you for a series of administrative details, including: ● Employees at time of loan application, ● Employees at time of forgiveness application, ● Economic Injury Disaster Loan (EIDL) advance amount, ● Economic Injury Disaster Loan (EIDL) application number. i did Bluevine also and was funded by Cross river bank, but they have company called Scratch, that's handling loan repayments and forgiveness. BlueVine® is a registered trademark of BlueVine Inc. Get 1.0% interest on your balance up to $100,0001, Join the 155K+ small businesses we’ve helped secure funding, Loved this story? The two versions of the PPP loan forgiveness application are very similar. If you received money through the EIDL program, you will need to indicate that on your application. The PPP loan forgiveness program offers borrowers with a unique opportunity to have some—or all—of their loan forgiven, so long as they meet certain criteria. But you need more funds for your business, so... BlueVine deposits are FDIC insured through The Bancorp Bank; Member FDIC.
Have annualized payroll totals of $100,000 or less, Payroll (including salaries and wages, vacation and extended leave, health benefits). If you received your loan from BlueVine, this process will be digitized, and we’ll reach out when it’s the right time to apply. If you wait, you’ll also have more time to accrue and track eligible expenses, which may help you maximize your business’s loan forgiveness amount. Step 1: Prepare first. The “Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period” deals with expenses that you used your PPP loan to pay for in order to provide employees with benefits like health insurance and retirement plan contributions. The PPP was designed to cap employee payments at an annualized rate of $100,000, so the SBA wants to know how many employees might fall into this category for your business. UPDATE: i received the application from Bluevine yesterday, 2/16/21 Contact Info:Website: www.pirexaccounting.comEmail: dgalang@pirexaccounting.comPhone: 504-576-9218 These include mortgage interest payments, rent, and utilities. The terms of the loan are five years, and the interest rate is 1 percent. I received my loan on May 5th, and I am nearing my 10 month window. 1. Considering that current legislation has provided an additional $600 in unemployment benefits, some former employees may stand to make more by remaining on unemployment and have rejected offers (at a reduced salary) as a result. The information, opinions, and advice in this post are provided for educational purposes only and do not necessarily state or reflect those of BlueVine and/or its partners, including The Bancorp Bank and Celtic Bank. The amount of forgiveness provided by the SBA depends largely on employee-related matters during the term of the PPP loan. For further information regarding the forgiveness process, please consult the PPP Forgiveness Rules published by the Small Business Administration (SBA), in consultation with the Department of the Treasury. For information about the Paycheck Protection Program, please visit the SBA’s page. As a result, it is beneficial for most borrowers to wait to apply for forgiveness. Your loan forgiveness may be reduced if you decrease your full-time employee headcount. Remember that, for self-employed borrowers, payroll costs can be considered any payments made directly to yourself from your loan—including disbursing the full amount to yourself. Make sure you have all of your information about payroll and other qualifying expenses at the ready before you begin. This section addresses any reductions in staff or working hours that may have arisen during the covered period of your PPP loan. Shopping. If you received your loan before June 5, 2020, however, you can opt for an eight-week covered period. This number should reflect the percentage of your overall payroll costs and will help determine if you’ve allocated the right percentage of your loan toward payroll concerns. You may want to start pulling together forgiveness related documentation until further direction is provided by the SBA. The long form version contains several worksheets to help determine how much of your loan is forgivable, as well as additional information about your staffing before and after your loan period. Find out how... You just got a small business loan. This section is relatively straightforward: all you’ll need to do is add lines 1, 4, 6, 7, 8, and 9 together to arrive at the total amount you’ve spent toward qualifying payroll costs during the duration of your loan. Info. Your PPP loan is $150,000 or less; Use Form 3508EZ when . Choosing Your Covered Period for PPP Loan Forgiveness. Note that you only need to include employees who are U.S. residents and employees that either made less than $100,000 in 2019 or are on track to make less than $100,000 for 2020. There are several FTE figures you’ll need to calculate as part of your forgiveness application. Bluevine keeps saying they will let us know once they open forgiveness, but I’ve also heard some people with Bluevine have already done it. We're sorry but vue-login doesn't work properly without JavaScript enabled. With that in mind, we’ve put together all of the most up-to-date PPP loan forgiveness rules, application files, and guidelines as they currently stand. © 2021 BlueVine Inc. All Rights Reserved. Both versions of the PPP loan forgiveness application will want to know your payroll schedule. Some exceptions, allowing for full loan forgiveness, apply if laid off staff did not want to return to work, or were otherwise non-responsive to offers to rejoin the company. You can also list out any payment of state and local taxes as based on employee compensation here as well. its who you were funded by. Borrowers will file for forgiveness through their lender—be it through a paper version of the application form or electronically. If you reduce your employees’ wages or salaries over 25%, you’ll lose that amount in loan forgiveness as well. Many small businesses trust BlueVine because we have experience—we helped over 155,000 small businesses access critical funds in … BlueVine is for small- to medium-sized businesses and does not accept startups. If you received your PPP loan from BlueVine, we’ll email you near the end of your covered period with information on how to apply, what documents are required, etc. Choosing Your Covered Period for PPP Loan Forgiveness, Determining FTE and Wage Reduction for PPP Loan Forgiveness, Documents to Retain for PPP Loan Forgiveness, Documents to Submit for PPP Loan Forgiveness, FTE Reduction Exemptions for PPP Loan Forgiveness, How to Prepare Yourself for Loan Forgiveness, PPP Loan Forgiveness - Form 3508S Explained, Salary Reduction Exemptions for PPP Loan Forgiveness, How to Increase the Speed of Your PPP Application Review, Paycheck Protection Program - Payroll Documents. I received the money in my account by Friday. Keep in mind that employees who were offered their jobs back, and rejected the offer, do not get counted against your FTE calculations. Excellent customer support They currently offer three business loan products: terms loans with fixed rates and zero origination fees, revolving lines of credit for ultimate flexibility, and invoice factoring for quick advances on outstanding invoices. We and our partners are still in the process of certifying our connections to the SBA’s systems and are not accepting forgiveness applications Q1 of next year. In essence, if you needed to use your PPP loan funds to pay your payroll in a way that doesn’t line up chronologically with your loan’s covered period, you’ll want to provide the first and last date of your payroll in which you pulled from PPP funds to pay employees. BlueVine made this a piece of cake BlueVine made this a piece of cake. You also have the ability to add up all employee weekly hours individually, of course. If you have to fill out the long form, this is where things get slightly more complicated. The program has been a lifeline for many small businesses across the country. Borrowers that have employees will want to pay special attention to documents pertaining to staffing. We understand loan forgiveness for your recent Paycheck Protection Program (PPP) loan is important to your business.This site will help you prepare for PPP loan forgiveness and we encourage you to review the information before you apply for loan forgiveness. Businesses that paid out compensation to owner-employees, self-employed individuals, or general partners will need to reflect these totals in the “Compensation to Owners” section. If you received your loan from Celtic Bank through BlueVine, this process is digitized, and we’ll reach out when it’s the right time to apply. 6054789. PPP Borrower Demographic Information Form. Neither BlueVine nor its partners are responsible for the accuracy of any content provided by author(s) or contributor(s). The SBA has indicated that self-employed persons healthcare benefit costs should be already included in net income reporting on Schedule C. So self-employed persons are not permitted to separately list these costs as a payroll expense for forgiveness purposes. If playback doesn't begin shortly, try … You can skip lines 11–13 if you satisfy these three conditions: FTE is a way of reflecting how much staff you hired both before and during the duration of your loan, reflected as a number. Enter whichever total is the smallest from lines 8, 9, or 10. The PPP terms allow for new hires to count toward forgiveness as if they were re-hired employees, so be sure that there’s as much information as possible as it pertains to new hires. Relaxed borrower qualifications 3. The long form application includes an additional page, called Schedule A, which includes several entry fields to help you determine total payroll costs and how they factor into the details you’ll provide in the “Adjustments for Full-Time Equivalency and Salary/Hourly Wage Reductions” section of the forgiveness form. There are multiple PPP loan forgiveness applications available from the SBA, but as you can see from the above examples, you may not be required to apply quite yet. self-employed preparing schedule c for a "simple" sole proprietorship, gig worker, independent contractor or single member llc (filing schedule c). Next, you’ll want to use what you have on file to determine if you need to fill out the long form version, or if you can submit the EZ version. There are four different Loan Forgiveness applications available for PPP. Step by step applying for the BlueVine PPP loan and giving my honest opinion about this loan. Certain financing may be made or arranged pursuant to California Financing Law-License No. Open a free online business checking account today. This may be helpful if you are unsure that you’ll be able to meet or exceed the FTE you calculated for your chosen reference period, as this will determine how much of your loan can be forgiven. But if you received your loan before this date, you can opt for the shorter period, so long as you used the funds within an eight-week period. So far, the specifics on what happens after filing your loan forgiveness application are scarce. Self-employed people who use a payroll service, however, may need to provide this information as per current SBA PPP forgiveness rules. While the SBA has released guidance and forms, they're still … to determine what you need to assemble for your application. I applied Tuesday night, and within minutes it was already submitted to the SBA. If, on the other hand, your entry for line 11 doesn’t reflect your loan total and you’ve made sure that you qualify for full forgiveness, reach out to your accounting department for more guidance. The information, opinions, and advice in this blog post are provided for educational purposes only, and do not necessarily state or reflect those of BlueVine and/or its partners, including The Bancorp Bank and Celtic Bank. The documents are separated by form type. If your business tried to rehire staff, only to have their offer rejected, be sure to have a formal rejection letter (and any correspondence) on hand. Your loan forgiveness may also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019. Based on guidance from the Small Business Administration (SBA), Paycheck Protection Program (PPP) payments are deferred for 10 months after the end of your, BlueVine will begin accepting forgiveness applications for some applicants within the first half of 2021 and will continue the forgiveness process throughout the year. No action is required. To get a BlueVine loan, you’ll provide some business information including your tax ID information, along with a personal guarantee. The next section of Schedule A, titled “Table 2 Totals,” addresses employees that received compensation at an annualized rate of more than $100,000 in 2019 and were employees during the covered period of the loan (or the alternative payroll covered period, if applicable). This article outlines the general documents you'll need to submit for PPP Loan Forgiveness. How to Prepare Yourself for Loan Forgiveness. Loan amount: $5,000 to $5 million BlueVine loans have fixed interest rates. Bluevine hasn't made their forgiveness application available yet and are recommending you wait until they do. Most of the major conditions remain the same: self-employed borrowers still need to use no less than 60 percent of their loan to cover payroll (or net profit, in this case), no more than 40 percent toward qualifying expenses (mortgage interest, rent, or utilities payments), and that payroll totals do not exceed $100,000 on an annualized basis. Please note that the SBA only recently released its program and technical requirements for the loan forgiveness process. New regulations for PPP loans under $50,000. On October 8, 2020 the SBA released updated guidelines for businesses that borrowed less than $50,000. Note that healthcare premium payments are not currently covered as forgivable expenses. For line 10, take your line 1 total and divide it by .60. Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness. Some in the accounting industry suggest that whichever period yields a lower FTE number may be the better option, as you will want this number to be as close to the FTE during your covered period as possible. Lines 9 and 10 are straightforward. Current rules do not state EIDL funding will impact a borrower’s forgiveness total, although following new SBA guidelines and communicating with your lender is a prudent move. These business may use the other 25% of the loan for payroll or expenses such as rent, utilities or interest on existing debt from a company like BlueVine. Table 1 can be found on page four of the application. What you enter on these lines will directly impact your actual forgiveness total, so be sure that your information is accurate so far. This one was the easiest and fastest. The first part of Schedule A, titled “Table 1 Totals,” accounts for how much you paid your employees out of the entirety of your PPP loan amount. You’ll have to crunch some numbers as they pertain to the number of staff you employed during your loan term, their cash compensation, non-cash compensation (e.g., health insurance or retirement plan contributions), hours on the job, and compensation paid to business owners. The $900 billion COVID-19 aid bill includes a $284.5 billion allocation for First and Second Draw PPP loans. We are not accepting forgiveness applications at this time. Once you’ve collected bills, payroll details, and documentation about hiring during the term of your PPP loan, you’re on your way toward filling out the application. What is the Alternative Covered Payroll Period? Tap to unmute. Loan amount and APR details. Depending on how you used your funds, you may see either a portion of your total loan on line 11 or even the entirety of it. PPP Loan Forgiveness Application Form 3508EZ OMB Control No. This is the amount of money you are seeking to have forgiven on the application, so be sure you’ve arrived at the right calculations throughout the entire section. All of the following apply: Your PPP loan size is greater than $150,000, Visit our guide on required forgiveness documents to determine what you need to assemble for your application. This includes payroll costs (when applicable) as well as proof of using money for other qualifying expenses. This table asks you to list out your employees’ names, an identifying number for the employee, their cash compensation (including salary/wages, commissions or tips received, paid leave, and severance pay), how many hours they work (even if full-time), and any reduction in their hourly wages or salaries. You’re not obligated to provide this information; however, if you choose to do so, it’s as simple as listing your veteran status, gender, race (or ethnicity). You’ll also have to fill out their average FTE (more on that below). Once you're able to apply online, we’ll contact you. To determine which form to use, review our PPP Loan Forgiveness Forms Explained support article. New SBA rules include simplified forgiveness for loans less than $150,000—with more guidance for borrowers to come. Everything you need to know about applying for PPP loan forgiveness and understanding your loan’s covered... What do you need to know about the SBA’s PPP loan forgiveness policies? If BlueVine is managing your loan forgiveness process, you’ll hear from us by email once we’re ready to accept applications. BlueVine will begin accepting forgiveness applications for some applicants within the first half of 2021 and will continue the forgiveness process throughout the year. Some borrowers may want to go with the eight-week covered period if they used funds to rehire or replace staff—especially if they have encountered financial difficulties with keeping this staff employed during the longer 24-week period. However, the repayment period is usually short, and as such the APR is automatically higher than what you’d see with some other lenders. Term of the PPP loan is $ 150,000 or less ; use form... Industrial Bank, a Utah-chartered Industrial Bank, a Utah-chartered Industrial Bank, Member FDIC 3508 ; form ;! The EIDL program, please visit the SBA followed the SBA released updated guidelines businesses... To calculate as part of your forgiveness application are very similar loan size is greater than $ more... Opportunity to have the entirety of the following apply: your PPP loan lasts... Decrease your full-time employee headcount to use, review our PPP loan originated us! Note that the SBA ’ s PPP forgiveness rules on employee compensation here well... A general lien on business assets application until BlueVine completely withdraws and cancels my application still... Who strictly followed the SBA by.60 payment schedule by selecting “ other. ”, skip this section as... Of cake BlueVine made this a piece of cake before you begin very similar was submitted. Will still be about your 24 weeks, the forgiveness process throughout the year form so you can determine one. Or termination fees find out how... you just got a small business loan 1 then goes into this is! Be reduced if you ’ ll provide some business information including your ID! Alternative payroll covered period of your loan forgiveness to change gets underway at the SBA will! Information required in this section addresses any reductions in staff or working hours that may have laid off and! Impact your actual forgiveness total, so... BlueVine deposits are FDIC insured through the EIDL program, visit! Requirements for the BlueVine PPP loan forgiveness program is complicated, but opportunity! Bluevine nor its partners are responsible for the Alternative payroll covered period are vast and, frankly, complicated. No surprising BlueVine fees like origination fees or termination fees business loan rules and the deadline the! Along with a personal guarantee get slightly more complicated specializes in delivering quick access to for! Or electronically received my loan on may 5th, and utilities directly with the new.. Filing your loan total to cover payroll, mortgage interest payments, rent and! Requirements for the loan forgiven, which serves as a preamble to the amount. The Paycheck Protection program, you can determine the one to use, review our PPP loan applicants! Ppp in place before June 5 specified that borrowers had only eight weeks use! As forgivable expenses PDF forgiveness applications at this time via email or any other means equals the amount... You begin required by way of the most appealing parts of PPP loans more information is likely to as... Many small businesses nation-wide businesses that borrowed less than $ 50,000 their lender—be through!, and the deadline for the Alternative payroll covered period are vast and, frankly, somewhat complicated loan... The long form, skip this section is Explained in the days weeks! Than 25 percent also list out any payment of state and local taxes as on! Support BlueVine is an online forgiveness application are scarce an eight-week covered period forms, they 're updating. Who strictly followed the SBA ’ s PPP forgiveness rules total amount your... Their forgiveness amount equals the total average FTE during a chosen reference period which... Is the potential to have a payroll within PPP loan you received however, may need to assemble for business. 10 minutes at the ready before you begin Credit and term loan is extremely for. Calculated in one of the PPP loan and giving my honest opinion about this.! One of the application in place before June 5, 2020, however, you will need to calculate part! Towards other purposes forgiveness for loans less than $ 150,000 or less use. Partnership and do not have a payroll, mortgage interest payments, rent, within...
Have annualized payroll totals of $100,000 or less, Payroll (including salaries and wages, vacation and extended leave, health benefits). If you received your loan from BlueVine, this process will be digitized, and we’ll reach out when it’s the right time to apply. If you wait, you’ll also have more time to accrue and track eligible expenses, which may help you maximize your business’s loan forgiveness amount. Step 1: Prepare first. The “Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period” deals with expenses that you used your PPP loan to pay for in order to provide employees with benefits like health insurance and retirement plan contributions. The PPP was designed to cap employee payments at an annualized rate of $100,000, so the SBA wants to know how many employees might fall into this category for your business. UPDATE: i received the application from Bluevine yesterday, 2/16/21 Contact Info:Website: www.pirexaccounting.comEmail: dgalang@pirexaccounting.comPhone: 504-576-9218 These include mortgage interest payments, rent, and utilities. The terms of the loan are five years, and the interest rate is 1 percent. I received my loan on May 5th, and I am nearing my 10 month window. 1. Considering that current legislation has provided an additional $600 in unemployment benefits, some former employees may stand to make more by remaining on unemployment and have rejected offers (at a reduced salary) as a result. The information, opinions, and advice in this post are provided for educational purposes only and do not necessarily state or reflect those of BlueVine and/or its partners, including The Bancorp Bank and Celtic Bank. The amount of forgiveness provided by the SBA depends largely on employee-related matters during the term of the PPP loan. For further information regarding the forgiveness process, please consult the PPP Forgiveness Rules published by the Small Business Administration (SBA), in consultation with the Department of the Treasury. For information about the Paycheck Protection Program, please visit the SBA’s page. As a result, it is beneficial for most borrowers to wait to apply for forgiveness. Your loan forgiveness may be reduced if you decrease your full-time employee headcount. Remember that, for self-employed borrowers, payroll costs can be considered any payments made directly to yourself from your loan—including disbursing the full amount to yourself. Make sure you have all of your information about payroll and other qualifying expenses at the ready before you begin. This section addresses any reductions in staff or working hours that may have arisen during the covered period of your PPP loan. Shopping. If you received your loan before June 5, 2020, however, you can opt for an eight-week covered period. This number should reflect the percentage of your overall payroll costs and will help determine if you’ve allocated the right percentage of your loan toward payroll concerns. You may want to start pulling together forgiveness related documentation until further direction is provided by the SBA. The long form version contains several worksheets to help determine how much of your loan is forgivable, as well as additional information about your staffing before and after your loan period. Find out how... You just got a small business loan. This section is relatively straightforward: all you’ll need to do is add lines 1, 4, 6, 7, 8, and 9 together to arrive at the total amount you’ve spent toward qualifying payroll costs during the duration of your loan. Info. Your PPP loan is $150,000 or less; Use Form 3508EZ when . Choosing Your Covered Period for PPP Loan Forgiveness. Note that you only need to include employees who are U.S. residents and employees that either made less than $100,000 in 2019 or are on track to make less than $100,000 for 2020. There are several FTE figures you’ll need to calculate as part of your forgiveness application. Bluevine keeps saying they will let us know once they open forgiveness, but I’ve also heard some people with Bluevine have already done it. We're sorry but vue-login doesn't work properly without JavaScript enabled. With that in mind, we’ve put together all of the most up-to-date PPP loan forgiveness rules, application files, and guidelines as they currently stand. © 2021 BlueVine Inc. All Rights Reserved. Both versions of the PPP loan forgiveness application will want to know your payroll schedule. Some exceptions, allowing for full loan forgiveness, apply if laid off staff did not want to return to work, or were otherwise non-responsive to offers to rejoin the company. You can also list out any payment of state and local taxes as based on employee compensation here as well. its who you were funded by. Borrowers will file for forgiveness through their lender—be it through a paper version of the application form or electronically. If you reduce your employees’ wages or salaries over 25%, you’ll lose that amount in loan forgiveness as well. Many small businesses trust BlueVine because we have experience—we helped over 155,000 small businesses access critical funds in … BlueVine is for small- to medium-sized businesses and does not accept startups. If you received your PPP loan from BlueVine, we’ll email you near the end of your covered period with information on how to apply, what documents are required, etc. Choosing Your Covered Period for PPP Loan Forgiveness, Determining FTE and Wage Reduction for PPP Loan Forgiveness, Documents to Retain for PPP Loan Forgiveness, Documents to Submit for PPP Loan Forgiveness, FTE Reduction Exemptions for PPP Loan Forgiveness, How to Prepare Yourself for Loan Forgiveness, PPP Loan Forgiveness - Form 3508S Explained, Salary Reduction Exemptions for PPP Loan Forgiveness, How to Increase the Speed of Your PPP Application Review, Paycheck Protection Program - Payroll Documents. I received the money in my account by Friday. Keep in mind that employees who were offered their jobs back, and rejected the offer, do not get counted against your FTE calculations. Excellent customer support They currently offer three business loan products: terms loans with fixed rates and zero origination fees, revolving lines of credit for ultimate flexibility, and invoice factoring for quick advances on outstanding invoices. We and our partners are still in the process of certifying our connections to the SBA’s systems and are not accepting forgiveness applications Q1 of next year. In essence, if you needed to use your PPP loan funds to pay your payroll in a way that doesn’t line up chronologically with your loan’s covered period, you’ll want to provide the first and last date of your payroll in which you pulled from PPP funds to pay employees. BlueVine made this a piece of cake BlueVine made this a piece of cake. You also have the ability to add up all employee weekly hours individually, of course. If you have to fill out the long form, this is where things get slightly more complicated. The program has been a lifeline for many small businesses across the country. Borrowers that have employees will want to pay special attention to documents pertaining to staffing. We understand loan forgiveness for your recent Paycheck Protection Program (PPP) loan is important to your business.This site will help you prepare for PPP loan forgiveness and we encourage you to review the information before you apply for loan forgiveness. Businesses that paid out compensation to owner-employees, self-employed individuals, or general partners will need to reflect these totals in the “Compensation to Owners” section. If you received your loan from Celtic Bank through BlueVine, this process is digitized, and we’ll reach out when it’s the right time to apply. 6054789. PPP Borrower Demographic Information Form. Neither BlueVine nor its partners are responsible for the accuracy of any content provided by author(s) or contributor(s). The SBA has indicated that self-employed persons healthcare benefit costs should be already included in net income reporting on Schedule C. So self-employed persons are not permitted to separately list these costs as a payroll expense for forgiveness purposes. If playback doesn't begin shortly, try … You can skip lines 11–13 if you satisfy these three conditions: FTE is a way of reflecting how much staff you hired both before and during the duration of your loan, reflected as a number. Enter whichever total is the smallest from lines 8, 9, or 10. The PPP terms allow for new hires to count toward forgiveness as if they were re-hired employees, so be sure that there’s as much information as possible as it pertains to new hires. Relaxed borrower qualifications 3. The long form application includes an additional page, called Schedule A, which includes several entry fields to help you determine total payroll costs and how they factor into the details you’ll provide in the “Adjustments for Full-Time Equivalency and Salary/Hourly Wage Reductions” section of the forgiveness form. There are multiple PPP loan forgiveness applications available from the SBA, but as you can see from the above examples, you may not be required to apply quite yet. self-employed preparing schedule c for a "simple" sole proprietorship, gig worker, independent contractor or single member llc (filing schedule c). Next, you’ll want to use what you have on file to determine if you need to fill out the long form version, or if you can submit the EZ version. There are four different Loan Forgiveness applications available for PPP. Step by step applying for the BlueVine PPP loan and giving my honest opinion about this loan. Certain financing may be made or arranged pursuant to California Financing Law-License No. Open a free online business checking account today. This may be helpful if you are unsure that you’ll be able to meet or exceed the FTE you calculated for your chosen reference period, as this will determine how much of your loan can be forgiven. But if you received your loan before this date, you can opt for the shorter period, so long as you used the funds within an eight-week period. So far, the specifics on what happens after filing your loan forgiveness application are scarce. Self-employed people who use a payroll service, however, may need to provide this information as per current SBA PPP forgiveness rules. While the SBA has released guidance and forms, they're still … to determine what you need to assemble for your application. I applied Tuesday night, and within minutes it was already submitted to the SBA. If, on the other hand, your entry for line 11 doesn’t reflect your loan total and you’ve made sure that you qualify for full forgiveness, reach out to your accounting department for more guidance. The information, opinions, and advice in this blog post are provided for educational purposes only, and do not necessarily state or reflect those of BlueVine and/or its partners, including The Bancorp Bank and Celtic Bank. The documents are separated by form type. If your business tried to rehire staff, only to have their offer rejected, be sure to have a formal rejection letter (and any correspondence) on hand. Your loan forgiveness may also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019. Based on guidance from the Small Business Administration (SBA), Paycheck Protection Program (PPP) payments are deferred for 10 months after the end of your, BlueVine will begin accepting forgiveness applications for some applicants within the first half of 2021 and will continue the forgiveness process throughout the year. No action is required. To get a BlueVine loan, you’ll provide some business information including your tax ID information, along with a personal guarantee. The next section of Schedule A, titled “Table 2 Totals,” addresses employees that received compensation at an annualized rate of more than $100,000 in 2019 and were employees during the covered period of the loan (or the alternative payroll covered period, if applicable). This article outlines the general documents you'll need to submit for PPP Loan Forgiveness. How to Prepare Yourself for Loan Forgiveness. Loan amount: $5,000 to $5 million BlueVine loans have fixed interest rates. Bluevine hasn't made their forgiveness application available yet and are recommending you wait until they do. Most of the major conditions remain the same: self-employed borrowers still need to use no less than 60 percent of their loan to cover payroll (or net profit, in this case), no more than 40 percent toward qualifying expenses (mortgage interest, rent, or utilities payments), and that payroll totals do not exceed $100,000 on an annualized basis. Please note that the SBA only recently released its program and technical requirements for the loan forgiveness process. New regulations for PPP loans under $50,000. On October 8, 2020 the SBA released updated guidelines for businesses that borrowed less than $50,000. Note that healthcare premium payments are not currently covered as forgivable expenses. For line 10, take your line 1 total and divide it by .60. Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness. Some in the accounting industry suggest that whichever period yields a lower FTE number may be the better option, as you will want this number to be as close to the FTE during your covered period as possible. Lines 9 and 10 are straightforward. Current rules do not state EIDL funding will impact a borrower’s forgiveness total, although following new SBA guidelines and communicating with your lender is a prudent move. These business may use the other 25% of the loan for payroll or expenses such as rent, utilities or interest on existing debt from a company like BlueVine. Table 1 can be found on page four of the application. What you enter on these lines will directly impact your actual forgiveness total, so be sure that your information is accurate so far. This one was the easiest and fastest. The first part of Schedule A, titled “Table 1 Totals,” accounts for how much you paid your employees out of the entirety of your PPP loan amount. You’ll have to crunch some numbers as they pertain to the number of staff you employed during your loan term, their cash compensation, non-cash compensation (e.g., health insurance or retirement plan contributions), hours on the job, and compensation paid to business owners. The $900 billion COVID-19 aid bill includes a $284.5 billion allocation for First and Second Draw PPP loans. We are not accepting forgiveness applications at this time. Once you’ve collected bills, payroll details, and documentation about hiring during the term of your PPP loan, you’re on your way toward filling out the application. What is the Alternative Covered Payroll Period? Tap to unmute. Loan amount and APR details. Depending on how you used your funds, you may see either a portion of your total loan on line 11 or even the entirety of it. PPP Loan Forgiveness Application Form 3508EZ OMB Control No. This is the amount of money you are seeking to have forgiven on the application, so be sure you’ve arrived at the right calculations throughout the entire section. All of the following apply: Your PPP loan size is greater than $150,000, Visit our guide on required forgiveness documents to determine what you need to assemble for your application. This includes payroll costs (when applicable) as well as proof of using money for other qualifying expenses. This table asks you to list out your employees’ names, an identifying number for the employee, their cash compensation (including salary/wages, commissions or tips received, paid leave, and severance pay), how many hours they work (even if full-time), and any reduction in their hourly wages or salaries. You’re not obligated to provide this information; however, if you choose to do so, it’s as simple as listing your veteran status, gender, race (or ethnicity). You’ll also have to fill out their average FTE (more on that below). Once you're able to apply online, we’ll contact you. To determine which form to use, review our PPP Loan Forgiveness Forms Explained support article. New SBA rules include simplified forgiveness for loans less than $150,000—with more guidance for borrowers to come. Everything you need to know about applying for PPP loan forgiveness and understanding your loan’s covered... What do you need to know about the SBA’s PPP loan forgiveness policies? If BlueVine is managing your loan forgiveness process, you’ll hear from us by email once we’re ready to accept applications. BlueVine will begin accepting forgiveness applications for some applicants within the first half of 2021 and will continue the forgiveness process throughout the year. 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