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    4 Replies Latest reply on May 11, 2020 6:40 PM by nti-nic

    PPP Loan Forgiveness

    nti-nic Wayfarer

      Has anybody received any information from Bank of America on the instructions for applying for PPP loan forgiveness?

       

      We're curious as the 8 week period starts for us, we want to make sure we're falling into the right guidelines for using the funds properly to ensure loan forgiveness, but it's difficult without knowing BoA's specific guidelines or qualifications.

       

      Thanks!

        • Re: PPP Loan Forgiveness
          pearnone Scout

          We haven't received any guidance from BOA yet either.  And nothing is clear about when the clock starts... 8 weeks from time we received the funds takes us into June... But 8 weeks since we applied is coming up quick.  And can we use it for back pay in March?  Or just going forward?

          • Re: PPP Loan Forgiveness
            borg99 Wayfarer

            for expenses "incurred and paid" during the covered period - which starts when the loan is 'funded' and goes for 8 weeks.  Hopefully 'funding' date = date money lands in your account - but on bofa's end it might be the day they funded, which could be a day or two before money landed in your account.  It's unclear, hopefully bofa will guide.  That can be a major issue if you have a payroll falling on the last couple of days of the covered period - if you miss it by a day, they whole payroll might not get forgiven.

             

            As for back pay - I'm pretty sure that only applies to those people who cut employees between 2/15 and 4/26.  The law gives you the ability to rehire those employees back by 6/30.   So if you hire them back for 6/30 payroll, you back pay what they should have made during the entire 8 week covered period.  I believe this method is allowed, so that you don't have to deal with average FTE test over the 8 wk period.   YOu just have to bring them back on payroll before 6/30, and pay them what they should have made over 8 weeks - based on the 2/15 payroll.

             

            You are not allowed to pay people for pay periods prior to the 8 week covered period.

             

            This is just my understanding of the rule.  I am not a lawyer

              • Re: PPP Loan Forgiveness
                nti-nic Wayfarer

                Yeah that's what we're wondering if the payroll actually has to go through during that 8-weeek period or if it's just the work done in that 8-week period that would get paid later. For example, for us the work done in May normally would get paid in June. But if the payroll actually has to go through during the 8 week period to be forgiven, we're wondering if we'll have to change how we normally run our payroll to comply with that.

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