July 23, 2020
It looks like about 75% of our loan will be forgivable, which covers 10 weeks of payroll. Since you said not to be in a hurry to apply for forgiveness, do we now just sit tight and see what develops over the next few weeks/months?
Posted by Armanino Financial Advisory Team
To be clear, we are not permitted to provide you any recommendations regarding actions you should or should not take. Such decisions must be made by you or in consultation with your professional advisors. We can point out, though, that you have 24 weeks in which to spend your PPP money, not just 10. If what you are saying is that you will have spent all of your funds in 10 weeks, but due to the reduction factors you will only get 75% forgiven, you have the choice to file for forgiveness now or at any time until 10 months after your Covered Period ends (which may be in the future even if you’ve already spent all your money — remember, your Covered Period is 24 weeks (unless you opt for 8 weeks), regardless of when the PPP money runs out).