How do I report PPP forgiveness on 990?

The Paycheck Protection Program (PPP) was established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to offer loans to small businesses as a direct incentive to keep their employees on the payroll. If all employee retention criteria are met, the loans are forgiven, and the funds are used for eligible expenses. 

Reporting information about the Paycheck Protection Program (PPP) forgiveness

The information regarding the forgiven PPP loans must be reported on Form 990, 990-EZ, and 990-PF. 

• Form 990

The amounts of forgiven PPP loans must be reported on Form 990, Part VIII, Line 1e (Government grants (contributions)) as contributions from a governmental unit in the tax year that the amounts are forgiven.

• Form 990-EZ

The amounts of forgiven PPP loans must be reported on Form 990-EZ, Part I, line 1 as contributions from a governmental unit in the tax year that the amounts are forgiven.

• Form 990-PF

The amounts of forgiven PPP loans must be reported on Form 990-PF, Part I, line 1 as contributions from a governmental unit in the tax year that the amounts are forgiven.