FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
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2.5-month equivalent of $100,000 per
year) for each individual or the 2.5-month
equivalent of their applicable compensation
in 2019, whichever is lower. For an
8- week Covered Period, this amount is
capped at 8/52 of 2019 compensation (up
to $15,385).
Next, you’ll fill out information about
nonpayroll costs. You only need to include
these if you want to apply for forgiveness
for these amounts. If you qualify for full
forgiveness based on payroll costs and/
or you don’t want to apply for forgiveness
based on nonpayroll costs, you can put 0
in Lines 2-4.
Also note that for nonpayroll costs, an
eligible nonpayroll cost must be paid during
the Covered Period or incurred during
the Covered Period and paid on or before
the next regular billing date, even if the
billing date is after the Covered Period. Eligible
nonpayroll costs cannot exceed 40%
of the total forgiveness amount. Count
nonpayroll costs that were both paid and
incurred only once.
Line 2. Business Mortgage Interest
Payments: Enter the amount of business
mortgage interest payments (not
including any prepayment or payment
of principal) paid or incurred during the
Covered Period for any business mortgage
obligation on real or personal property
incurred before Feb. 15, 2020. Do not
include prepayments.
Line 3. Business Rent or Lease Payments:
Enter the amount of business rent
or lease payments paid or incurred for real
or personal property during the Covered
Period, pursuant to lease agreements in
force before Feb. 15, 2020.
Line 4. Business Utility Payments:
Enter the amount of business utility payments
(business payments for a service for
the distribution of electricity, gas, water,
telephone, transportation, or internet access)
paid or incurred during the Covered
Period, for business utilities for which
service began before Feb. 15, 2020.
Potential Forgiveness Amounts
Now comes the fun part. You get to find
out whether you qualify for full forgiveness.
Hopefully you will!
Line 5. Add the amounts on lines 1, 2,
3, and 4
Line 6. PPP Loan Amount
Line 7. Payroll Cost 60% Requirement
(divide Line 1 by 0.60): Divide the
amount on line 1 by 0.60, and enter the
amount. This determines whether at least
60% of the potential forgiveness amount
was used for payroll costs.
Forgiveness Amount
Line 8. Forgiveness Amount (enter
the smallest of Lines 5, 6, and 7): That’s
the end of the calculation. But, there’s one
more thing you’ll need to be aware of. It’s
this note in the instructions: “If applicable,
SBA will deduct EIDL Advance Amounts
from the forgiveness amount remitted to
the Lender.” It appears that the EIDL advance
(grant) will be subtracted from the
amount for forgiveness purposes.
PLEASE NOTE
The material contained in this article is for
informational purposes only, is general in nature,
and should not be relied upon or construed as a legal
opinion or legal advice. Please keep in mind this
information is changing rapidly and is based on our
current understanding of the programs. It can and
likely will change. Although we will be monitoring
and updating this as new information becomes
available, please do not rely solely on this for your
financial decisions. We encourage you to consult with
your lawyers, CPAs and Financial Advisors.
3D PRINTING
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