PPP Loan Forgiveness & ERTC Update
Updated as of June 1, 2021 at 9:30 a.m.
PPP Loan Forgiveness
If you received a PPP loan in 2020 and haven’t yet applied for forgiveness, it may be time for you to begin that process. Borrowers have 10 months following the end of their covered period before repayment on the loan begins. For example, if your covered period ended in September/October of 2020, your 10-month period will be ending in June or July. It is important to note that you may apply for forgiveness after the loan repayments begin and will be refunded for any loan repayments made upon being approved for forgiveness by the SBA.
Consult your MHCS advisor for assistance in completing the SBA’s PPP forgiveness application and supporting documents.
Employee Retention Tax Credit (ERTC)
Please be cautious of third-party providers offering ERTC calculations for your business. Recently, we have seen instances where third-party providers calculate credits for businesses that don’t appear to qualify under the IRS rules. The claims for these credits could be audited by the IRS through the next 5 years, and if you and/or the provider erroneously claimed the credits without proper supporting documentation to prove qualification, you could be required to pay back these amounts with interest and penalties. If you have been approached by a third-party provider regarding ERTC services, please do not hesitate to reach out to us if you would like a second opinion on the services they are providing.
Our MHCS team can help with the ERTC process, including working with you to determine eligibility as well as calculating and claiming the credit.
In addition, if you have applied for a second draw PPP loan in 2021 and think you may be eligible for the ERTC, please reach out to your MHCS advisor. Our team can help with the PPP forgiveness application in conjunction with claiming the ERTC to maximize your benefits.
Please reference our website to see qualifications for ERTC.