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    PPP Loan Forgiveness for Photographers

    Are you a photographer that applied for the PPP Loan with the intention of having it all or some of it forgiven?

    In the next 8-12 weeks you’ll likely be applying for forgiveness. Here’s a brief overview of the forgiveness application.

    The application has 4 components and certainly isn’t easy to use if your company has employees. Make sure to download the form and start collecting the information. It’s highly likely your bank will provide an online portal or form to submit this information in the next 2 months.

    One important note about payroll, specifically for photographers is the acceptable documentation that’s outlined on page 10:

    Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the

    Alternative Payroll Covered Period consisting of each of the following:

    a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid
    to employees.
    b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period
    or the Alternative Payroll Covered Period:
    i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
    ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported,
    or that will be reported, to the relevant state.
    c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to
    employee health insurance and retirement plans that the Borrower included in the forgiveness amount (PPP Schedule A,
    lines (6) and (7)).

    According to the SBA and their recent press release:

    Washington—Today, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.

    The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.

    The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

    • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
    • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
    • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
    • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
    • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

    The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic.  The documents released today will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans.

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