Both loans are combined. If the total is up to $40,000, you get 25% forgiveness as long as you pay back the other 75% on time (by Dec 31, 2022). If the total is above $40,000, you only get forgiveness if you pay $30,000 plus 50% of the excess on time. The forgiven amount will be $10,000...
This is a great time to get your business organized and it does not matter if you are a sole proprietorship, partnership or corporation (or even an employee with employment expenses)! Things usually start to slow down now, so take advantage of the lull and pull together your bookkeeping...
I cannot tell you the number of times I have started working on someone’s books and their balance sheet is not in good shape. For some reason, I find the asset side of the balance sheet gets neglected when it comes to bookkeeping and accounting.
