The Small Business Administration and Treasury released new guidance clarifying that business expenses made with PPP funds are not eligible for a tax deduction. The end result is neither tax harm nor a tax benefit. If you received a PPP loan that is not forgiven(which should be very few small businesses), you would then be able to deduct those business-related expenses for tax purposes.
The Department of Treasury is encouraging businesses to file for forgiveness as soon as possible. If you do not file for forgiveness by the end of the year, but anticipate your PPP loan being forgiven, then you will still not be allowed to deduct PPP-related expenses in 2020.
Please check with your lender to see if they are accepting forgiveness applications.
If you are a recipient of a $50,000 or less PPP loan, you can apply for your loan to be forgiven using a simpler application tool. The streamlined application for Form 3508S and instructions can be found HERE. For PPP loans exceeding $50,000, please speak with your lender on how to apply for forgiveness.
Your lender can provide further guidance on how to submit your application.