40%. Popular Pages The borrower pays its September electricity bill on October 16. Our Partners; . For payroll costs only, the borrower may elect to use the Alternative Payroll Covered Period to align with its biweekly or more frequent payroll schedule. This is the PPP, forgiveness application form for PPP loans under $150,000. Kabbage is a trademark of American Express used under license. Payments other than for cash compensation should be included on lines 6-8 of PPP Schedule A of the loan forgiveness application (SBA Form 3508 or lender equivalent), for borrowers using that form, and do not count toward the $20,833 cap per individual. Then youre going to find this page. Loan Forgiveness Payroll Costs FAQ 8 outlines the rules that apply to owner health insurance. Okay. The good news is the principal and interest amounts can be deferred for up to six months. Compensation is only eligible for loan forgiveness if the payments to partners are made during the Covered Period or Alternative Payroll Covered Period. Then it will have only taken 1 and a half years to apply. *Cant be combined with any other offer. You click that link and that will take you to the PPP forgiveness portal. The content of these FAQs is for informational purposes only and is subject to change. And here you put your email and the SBA loan number that you got from your SBA note. Example 3: An employee earned a wage of $20 per hour between January 1, 2020 and March 31, 2020 and worked 40 hours per week. Are Paycheck Protection Loans guaranteed by the SBA? Forgiveness app in December 2020. But if you are working under a corporation or an LLC, here you put your business EIN number. Ultimate Guide to Paycheck Protection Program (PPP) Loans, Paycheck Protection Program (PPP) loan forgiveness guidelines, Self-Employed contractors can apply for Paycheck Protection Program loans. 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. Payroll costs (using the same definition of payroll costs used to determine loan eligibility), Interest on the mortgage obligation incurred in the ordinary course of business, Payments on additional wages paid to tipped employees, Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and state income, payroll and unemployment insurance filings, Documentation verifying payments on covered mortgage obligations, lease obligations and utilities, Certification that documentation is true and correct, and that the amount that is being considered for forgiveness was used in accordance with the Paycheck Protection Programsguidelines for use. It keeps saying this below mentioned text. On the next page is going to ask for your name again, you put your name, the position in your business, if youre self-employed, you put sole proprietor or if youre not self-employed, you put CEO, director, partner, president, whatever position you have in your business, you put your email address. Reductions in the number of employees or compensation occurring between February 15, 2020, and April 26, 2020, will generally be ignored if the action (layoff or salary reduction) is reversed by June 30, 2020. So, thats important to know that if you got a PPP loan through Kabbage and K Servicing, thats over $150,000 then this video is not for you, okay. Paycheck Protection Program (PPP) Loans are provided by Kabbage, Inc. Kabbage, Inc. is not affiliated with American Express. Interest on unsecured credit is not eligible for loan forgiveness because the loan is not secured by real or personal property. Emergency Chiropractic PC. LLC owners: LLC owners must follow the instructions that apply to how their business was organized for tax filing purposes for tax year 2019, or if a new business, the expected tax filing situation for 2020. In calculating its loan forgiveness amount, a borrower may exclude any reduction in FTE employees if the borrower is able to document in good faith the following: (1) an inability to rehire individuals who were employees of the borrower on February 15, 2020 and (2) an inability to hire similarly qualified individuals for unfilled positions on or before December 31, 2020. The amount on line 1.c would be 0.75 or more, so the borrower would enter $0 in the Salary/Hourly Wage Reduction column for that employee on the PPP Schedule A Worksheet, Table 1. K Servicing basically made a partnership with the Biz2X and you have to apply through the Biz2X portal. You click Okay. K Servicing tried to relieve some pressure by partnering with fintech company SmartBiz in late March to help borrowers with their second draws. How can we assist you? Contact Information 925B Peachtree St NE PMB 383 Atlanta, GA 30309-3918 Visit Website Email this Business. New clients only. what happened to buster edwards wife and daughter. Kabbage (K Servicing) PPP Loan Forgiveness Application via Biz2X | Form 3508S 5,325 views Sep 1, 2021 196 Dislike Share Freedomtax Accounting 37.1K subscribers In this video we show you. For more information on transportation utility fees, see here. If the partnership did not submit its 2019 IRS Form 1065 K-1s when initially applying for the loan, it must be included with the partnerships forgiveness application. Reduction in Defaults. Given the amount of interest in the program, it is anticipated that not more than 40% of the forgiven amount may be for non-payroll costs. Documentation can include copies of financial records for each borrowing location. Yes, if the payroll costs are paid on or before the next regular payroll date after the Covered Period or Alternative Payroll Covered Period. Keep in mind: If you apply before the guidance is final, you could reduce your forgiveness amount. Please visit SBA.gov for more information. So, the complete PPP loan amount thats what you put on payroll costs. No. Anyone after that has to wait a few more weeks. PPP Loan Forgiveness Applications This free resource helps business owners apply for PPP loan forgiveness. We want to make sure you and your business are protected and get the critical funding you need during this crisis. In Step 3, the borrower would multiply $1 per hour by 10 hours per week to determine the weekly salary reduction. Now, one of the most common questions we get is how long does this process take right now. Okay, so you log into K servicing, they will send you a code via text for security code to get in. So I got my forgiveness form sent to the SBA almost 2 weeks ago through Biz2Credit. Use it to fill out a PPP forgiveness application online to send to your lender. In no event may the Covered Period extend beyond December 31, 2020. 1 1 3. The lender is responsible for notifying the borrower of remittance by SBA of the loan forgiveness amount (or that SBA determined that no amount of the loan is eligible for forgiveness) and the date on which the borrowers first payment is due, if applicable. With the recent SBA updates on the Paycheck Protection Program (PPP) forgiveness rules, the restrictions have loosened and become a bit easier for PPP loan recipients. And that will bring up several options. But if you want to fill it out, you can. Visit our website - https://freedomtaxaccounting.com/DISCLAIMERThis video is intended for education purposes and should not be taken as legal or tax advice. K Servicing Forgiveness Biz2x, Menu. Yes. The employee worked 10 hours per week between January 1, 2020 and March 31, 2020. New clients only. Loans through PPP have a fixed interest rate of 1%. Rated 4.6 out of 5 based on . What Happened To Buster Edwards Wife June? Eight Weeks vs. 24 Weeks. Under Step 3.a., $39,000 (75% of $52,000) is the minimum salary that must be maintained to avoid a penalty. Payroll costs incurred (i.e., the pay was earned on that day) during this Alternative Payroll Covered Period are eligible for loan forgiveness if the last payment is made on or before the first regular payroll date after November 21. The borrower may elect an Alternative Payroll Covered Period that starts on June 7 and ends on November 21 (167 days later). In addition to the specific caps described below, the amount of loan forgiveness requested for owner-employees and self-employed individuals payroll compensation is capped at $20,833 per individual in total across all businesses in which he or she has an ownership stake. The Covered Period or Alternative Covered Period for any borrower will end no later than December 31, 2020. How to Calculate PPP Loan Forgiveness and Apply, Website: www.omniagentsolutions.com/KServicing. Now it says a link here which says the new K Servicing Biz2X dashboard. David Magen Community Ctr Inc. Multi Specialty Health. As long as a borrower submits its loan forgiveness application within ten months of the completion of the Covered Period (as defined below), the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by SBA. The documents that borrowers should maintain to show compliance with this exemption include the written offer to rehire an individual, a written record of the offers rejection, and a written record of efforts to hire a similarly qualified individual. 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). Payroll costs include all forms of cash compensation paid to employees, including tips, commissions, bonuses, and hazard pay. Be sure to document this. Here is a list of requirements. Otherwise loan payments are due as indicated. As a result, the borrower would enter $0 in the Salary/Hourly Wage Reduction column for that employee on the PPP Schedule A Worksheet, Table 1. Use it to fill out a PPP forgiveness application online to send to your lender. However, if a borrower pays twice a month or less frequently, it will need to calculate payroll costs for partial pay periods. However, interest will continue to accrue over this period. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Here, you put your tax ID number, if youre self-employed, then here you put your social security number. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content. k servicing forgiveness biz2x. 2 On May 4, the borrower receives its electricity bill for April. For many business owners, theres a lot to digest. No. Run around with new guidelines have to pause then resubmit Jan-Feb 2021. All right. Although interest on unsecured credit incurred before February 15, 2020 is a permissible use of PPP loan proceeds, this expense is not eligible for forgiveness. So, this is a process that can easily take five months. Contact your PPP lender and complete the correct form: Any business-related interest payments on a mortgage or other debt obligation (excluding any prepayment or principal obligation) that was incurred before February 15, 2020. When you click that, thatll take you to this page, were basically here, this will automatically be filled out for you. Now once again, if you do not know or if you want help from us to complete your PPP loan forgiveness application, this is our contact information. The examples below are for a borrower using a 24-week Covered Period. 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. Wonder how much of the interest they're forcing on these loans they'll get to receive from the govt (and thus our hard earned tax dollars). Interest accrues during the time between the disbursement of the loan and SBA remittance of the forgiveness amount. If you click View, you are going to see This is the PPP forgiveness application form 3508S, okay, so confirm that the information here is correct. If you see any information thats incorrect, go back and click Regenerate, okay, or go back to the arrows and fix anything that you need to fix. In Step 1, the borrower enters the figures in 1.a, 1.b, and 1.c, and because annual salary was reduced by more than 25%, the borrower proceeds to Step 2. Download and fill out the forgiveness form 3508 EZ and send it to K servicing. Learn more about how our platform can help your business lending department streamline their processes and become more profitable. what happened to buster edwards wife and daughter. Hello from Freedom Tax Accounting, were an accounting firm where we have been providing quality tax and accounting services now for over 20 years. Example: A borrower received its loan before June 5, 2020 and elects to use a 24-week Covered Period. If youre self-employed, youre going to choose sole proprietor. 800-200-5678. | Learn more about Dragomir Bivol's work experience, education, connections & more by visiting their profile on LinkedIn #kabbagepppforgiveness #kservicingpppforgiveness #kabbageppp #pppforgiveness Fill in the information below to request a callback from one of our experts. Once you sign it then they continue with the PPP forgiveness process. Sign in For purposes of calculating reductions in the loan forgiveness amount, the borrower should only take into account decreases in salaries or wages. Kabbage Login here to manage Kabbage Funding lines of credit originated before October 16, 2020 or PPP loans with KServicing. Once you complete the PPP forgiveness application form, through K Servicing, K Servicing has 60 days to process your PPP forgiveness application form and send it to the SBA. If your business is business loans and you want a digital solution to power your workflows, Biz2X has the capabilities that your bank or financial institution needs. The borrower should refer to the Salary/Hourly Wage Reduction section under the Instructions for PPP Schedule A Worksheet in the PPP Loan Forgiveness Application Instructions. Locate the email address used to log in to the KServicing dashboard and SBA loan number. Example: A borrowers 24-week Covered Period runs from April 20 through October 4. If so how? You may contact them at (800) 509-6191 or [email protected]. Now the rest of the questions are optional. Alright. If electronic signatures are not feasible, then when obtaining a wet ink signature without in-person contact, lenders should take appropriate steps to ensure the proper party has executed the document. Okay, this is already prefilled out for you. I called KServicing and they've confirmed that they have retained Biz2X.com to accept Forgiveness applications. Loan Forgiveness for Second Draw Borrowers All PPP lenders may accept scanned copies of signed loan forgiveness applications and documents containing the information and certifications required by SBA Form 3508, 3508EZ, or lender equivalent. And the next page basically tells you that this is the form that is going to generate form 3508S. The PPP loan program allows small business owners and self-employed individuals to apply for funds up to 2.5 times their monthly payroll costs. If documents are needed the SBA will ask for them themselves. If the funds are used appropriately, business owners can apply for full loan forgiveness to have the entire amount of the loan forgiven. Self-employed Schedule C (or Schedule F) filers: The compensation of self-employed Schedule C (or Schedule F) individuals, including sole proprietors, self-employed individuals, and independent contractors, that is eligible for loan forgiveness is limited to 2.5/12 of 2019 net profit as reported on IRS Form 1040 Schedule C line 31 (or 2.5/12 of 2019 net farm profit, as reported on IRS Form 1040 Schedule F line 34) (or for new businesses, the estimated 2020 Schedule C (or Schedule F) referenced in question 10 of Paycheck Protection Program: How to Calculate Maximum Loan Amounts By Business Type ). Under these circumstances, the borrower incurred payroll costs during the Covered Period and may seek loan forgiveness for the payroll costs paid on October 9 because the cost was incurred during the Covered Period and payment was made on the first regular payroll date after the Covered Period. Print this voucher and bring it with you to our offices at For Safari, press command-option-C. Microsoft Edge Inspect Element, View Source Keyboard Shortcut. Polyethylene Film / PE Sheet If you are an existing customer who previously applied for PPP loan, please enter the email you used to apply for the loan to log into the portal. American Express Business Line of Credit offers access to a commercial line of credit ranging from $2,000 to $250,000; however, you may be eligible for a larger line of credit based on our evaluation of your business. If you laid off an employee, then offered to rehire the same employee for the same salary or wage and number of hours, but they declined the offer, your loan may still be forgiven for the full amount. Yes. Nothing since except for phone calls where I get more run around. All payments (principal and interest) are deferred until you receive a decision on your loan forgiveness application. Are Paycheck Protection Loans guaranteed by the SBA? About. 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. Remember that the approved costs subject to forgiveness are broader than just payroll, and also include mortgage interest, rent and utilities. This is based on how much you spent on payroll and other eligible expenses like rent and utilities during the 24-week period. Business Advisory; Business Valuation; Corporate Finance; Cash Flow Modelling; M&A Advisory; Venture Capital; Private & Public Partnerships; Owner Supervision And Internal Control I received the error because we have to wait until they send us an email to apply.the Kservicing rep suggested this week or next. 100% forgiveness may be achieved if funds are proven to be used 75% for payroll expenses and 25% for covered costs.