Four Insights into the PPP Loan and Its Forgiveness

Let’s face it…

Applying for a Payroll Protection Program (PPP) loan, and receiving repayment-forgiveness, can be complicated.

That’s why reading my new article is so important. You see, it’s designed to give you insight into how the PPP works and the difference between:

* The PPP program
* Economic Injury Disaster Loan (EIDL)
* Economic Injury Disaster Loan (EIDL) advance

We’ll cover other important topics too, as you’ll discover when you read the full article titled Tax Tips: “Four Insights into the PPP Loan and Its Forgiveness.”

Four ways our fact-filled article can help you:

1. You’ll learn why you have to apply for your loan “in good faith.” Hey. You can’t blame the SBA for wanting to provide loans only to honest people and not fraudsters. That’s why the SBA requires all borrowers to make their certification “in good faith.” Want to make sure that you are in compliance with the “good faith” law? Read the full article.
2. We’ll explain the difference between the three types of program loans.
   
   * The PPP program. The PPP is the cash-infusion program of choice. The cash-infusion comes from a bank or other SBA lender and is based on your prior payroll (2019).
   
   * Economic Injury Disaster Loan (EIDL). Unlike the PPP loan, which comes from a bank or other approved SBA lender, the EIDL is issued directly by the SBA, carries a 3.75% interest rate, may require collateral, and must be repaid.
   
   * Economic Injury Disaster Loan (EIDL) advance. The EIDL advance, when available, comes into play with the EIDL loan application. It’s an advance on the EIDL loan of up to $10,000.
   
   You’ll get the whole story when you read the full article.
   
3. We’ll tell you the rules governing the automatic forgiveness of small PPP loans. Important tip: It may make sense for you to sit on your forgiveness-application until the fall. That’s because there’s speculation that the SBA is going to forgive all loans under $500,000. (That’s a “small loan”?) We don’t know yet if this is true, but keep an eye open for the resolution of this issue. All will be explained when you read the full article.
4. We’ll tell you who is defined as an “owner-employee.” According to the PPP, there are four types of owner-employees. If you’re going to apply for loan-forgiveness, you need to know which category you are in. We’ll give you all the information you need, when you read the full article.