The Small Business Administration’s (SBA) Paycheck Protection Program (PPP) has been evolving since its creation. Part of that evolution involves the next step — applying for loan forgiveness. As we approach the end of the year, determining the best time to apply for loan forgiveness is an important conversation to have with your accountant.

When the PPP launched in April, if you followed its rules, you had eight weeks to use your loan proceeds for expenses that qualify for loan forgiveness. When the PPP Flexibility Act passed on June 5, it extended the covered period to 24 weeks. This additional time makes it more feasible for recipients to use up the funds for allowable payroll expenses alone, ensuring the highest amount of loan forgiveness. However, there are some circumstances that will impact the forgiveness amount if you obtained the Economic Injury Disaster Loan (EIDL) program “advance”, as well as the tax implications of PPP as we know it now, until more changes occur.

This educational information is courtesy of Kenny Nearhoof, AgChoice accounting officer. Sarah Klinefelter is a loan officer with AgChoice Farm Credit, which specializes in providing farm and country property loans and financial services to help Adams and York county customers confidently reach their dreams. To learn more about AgChoice and its 103 years of experience, call 717-792-2641 or visit

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