PPP loan entry in QuickBooks
PPP is a great program for small businesses.
A PPP loan journey
Application (normal time without technical issue: 2 days):
- 2020-05-07 filed application via TD bank.
- 2020-05-11 email exchange with TD bank to clarify a few items.
- 2020-05-12 e-signed some documents, loan approved, fund deposited to TD bank account.
- 2020-12-07 SBA PPP Forgiveness Application was successfully submitted to TD Bank.
- 2020-12-16 TD Bank has completed its review of the loan forgiveness application.
- 2020-12-28 The SBA has approved the PPP forgiveness request.
Application (normal time without technical issue: 10 days):
- 2021-03-16 filed application via TD Bank. TD Bank's PPP portal is poorly designed. Once you are logged out (e.g., due to session expiration), it is very challenging to log in no matter what browser you use. The best way to handle this is to keep clicking buttons on the port to go back and forth if you need to do something else when filling out the application. This will keep you logged in to avoid the nightmare of re-login.
- 2021-03-17 Response from TD bank requesting dating submitted materials.
- 2021-03-17 to 2021-03-19 Sent emails from 3 different email accounts asking for clarification.
- 2021-03-19 Called TD-bank for clarification, emailed dated Q1 receipts for 2019 and 2020
- 2021-03-19 Received response for Q1 P&L and sent them per the request.
- 2021-03-19 Received response confirming application sent for final processing.
- 2021-03-25 Received notification of the SBA's approval.
- 2021-03-26 Received the request to e-Sign the promissory note, e-signed the note, downloaded the note.
- 2021-03-29 The loan is deposited into the checking account.
Record the loan
- Create a new liability account PPP and entering the loan amount as the balance.
- Make deposits from PPP to the bank account to which the SBA has deposited the loan.
- Create a new other income account for PPP forgiveness for forgiveness.