Attorney Thomas B. Burton provides an update on the Paycheck Protection Program Loan Forgiveness application that was released by US Treasury. He also discusses an automated tool created by Mark Cuban and a bank CEO intended to help small businesses generate and complete the application for submission to their lender.
Link to official US Treasury Paycheck Protection Program Loan Forgiveness Application
Transcript of Video: SBA Loans Video 11--Paycheck Protection Program Loan Forgiveness Application
Okay, welcome back this is Attorney Thomas Burton and I wanted to do another video in my series on the paycheck protection program application, specifically the new paycheck protection program forgiveness loan forgiveness application that came out from US Treasury a week or two ago and US Treasury released it but I have been so busy I haven’t gotten back to this video series thankfully with the reopening I hope you're all doing well people are getting out and about enjoying the weather but for many people who applied for the paycheck protection program loan, you're going to be nearing the end of your eight week covered…either now or in the next couple weeks and after that ends you can begin preparing and submitting this loan forgiveness application, so the application itself is about eleven pages here and it's not super easy, in fact. I think the, application for the loan, although that was complicated we had all those videos going through it was almost simpler than the forgiveness and that sort of makes sense with the government but the first two pages are instructions and then you'll see the second two they look similar to the loan application where you're going to put in the info and then you’ve got to initial all these statements there, so make sure you application is correct before you submit it to the government because there are penalties for fraud or for misstating something and then you sign a date at the bottom. Now the other reason I want to create this video today is I was reading this interview with Mark Cuban of the Dallas Mavericks and the entrepreneur and he and this bank CEO created this automated tool to help small businesses automate this PPP loan forgiveness application because he said he took a look at it and saw how complicated it was.
So I'm going to put because with the application it's not just the application they want attached worksheets and documentation so I'm going to put a link in this video to that tool they created. Now I didn't create it they created it so you can read all the disclaimers about using it but it's intended primarily for a solopreneur and entrepreneur self-employed individual like a lot of us who don't have a team of a finance department a team of accountants to put together all this payroll loan documentation, so when you go to submit this loan forgiveness application, you do it directly to your lender, but you use the, Form US Treasury created and your lender's going to ask for attachments and they're also are instructions here on what you need to submit but follow what your lender says if they ask for something specific, but in general, they want to get payroll records to show what you paid for payroll costs any costs paid for retirement plans for employees health insurance, taxes and then receipts, canceled checks, bank statements to show what you spent the money on for things like rent and utilities. So if you kept canceled checks that's good, if you did it all in one bank account, like I recommended a few videos ago, you can print out that ledger and provide it.
And then what you want to do is complete the application sign it and add all those attachments to the application and submit it to your lender. Then your lender by law has 60 days to respond to your request for good for forgiveness. After which they have to respond. Yes or no.
So if you're nearing the end of your eight week covered.. You want to get that forgiveness application in and then it starts to clock on your lender to provide you with an answer. Now also note since my last video there's been a bill passed by Congress signed by the President they relaxed some of the rules on the PPP program. So if you were already operating under the old rules you may have already done it with that 75% allocation to payroll and that's fine but it looks like they're bringing it down to 60% allowing you to use a little more of the funds and other covered expenses and the rationale was this was for people with higher overhead. So check out those rules on Treasury website to adjust how you're doing it. Otherwise if you operated under the 75% rule, we were all told for payroll in the beginning you'll be fine with that. If you're at the end of your eight week period you could start working on this fun PPP loan forgiveness application.
So again, check out the link to the official app from US Treasury, and then I'll put the link to the automated tool from Mark Cuban in this video as well. I ran through it. I found it pretty good. It helps you fill in the right blanks. It's more like a tax software asking you questions, but you want to verify when you get all the information on that PDF that it's the right numbers before you sign and submit to your lender. So, that's all for now. I hope you're all doing well stay safe be well and we'll see you next time.
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Transcript and captions provided for ease of access for the hearing impaired.
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