8/25/2020 · Covered Period: PPP Loans prior to June 5th, 2020, cover an eight-week forgiveness period. Loans disbursed after June 5th, 2020, have a 24-week covered period. The first date should be the date of loan disbursement and then count eight or 24 weeks from there for the second PPP limits compensation to an annualized salary of $100,000. For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation ;· If you were assigned a PPP loan number on or before June 5, 2020, you now have the option of taking 24 weeks to spend the funds instead of eight weeks. Borrowers whose loan numbers were assigned after June 5 will automatically have a forgiveness period that is the shorter of: 24 weeks, or; From the date of the loan to December 31, ;· Before providing some illustrations, it’s important to first understand some of the basic loan forgiveness provisions of the PPP. Covered Period: Under the Act, the amount of the loan subject to forgiveness is directly related to the amount of loan proceeds spent on qualifying payroll and other costs during the covered period. For borrowers whose loan was made on or after June 5, the covered period is the 24-week …Typically, your forgiveness amount matches your loan amount, which we helped you calculate in the above section, How to Calculate PPP Loan Forgiveness if You’re Self-Employed. To calculate your forgiveness amount, you will need to add up all eligible payroll and non-payroll costs incurred during the covered period 24-weeks (168-day) beginning when the borrower received their PPP Forgiveness: 8 Weeks vs. 24 Weeks | Bench AccountingPPP Forgiveness: 8 Weeks vs. 24 Weeks | Bench AccountingPPP Forgiveness For Self Employed Workers - Biz2CreditPAYCHECK PROTECTION PROGRAM12/22/2020 · But more iron-clad details are given below on PPP loan forgiveness. 24 Week Rule. Only expenses incurred in the given 24 week period are eligible for forgiveness. You will be using either an 8 week or 24 weeks reporting period for forgiveness. If you received a loan before June 5th, then you have a choice of using either ;· You can use the entirety of your PPP loan proceeds for owner compensation and still qualify for loan forgiveness—as long as your owner compensation doesn’t exceed $20,833 for the 24-week covered period (or $15,385 for the eight-week covered period).24-week period: use the method of 2019 net profit, up to $20,833 - which is 100% forgiven. Self-employed with no employees can spend the full $20,833 as owner compensation replacement and it will be eligible for 100% forgiveness if proper documentation is provided with PPP Forgiveness application.

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