The AICPA has released a Technical Question and Answer (TQA) 3200.18, (Borrower Accounting for a Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program).
The TQA provides guidance with respect to accounting for PPP loans in accordance with US GAAP. According to the TQA, nongovernmental entities may account for PPP loans under FASB ASC Topic, 470, Debt, and that nongovernmental entities that are not nonprofit entities may account for the loans as government grants under certain circumstances. So, entities that are not governmental nor nonprofit should be able to treat the PPP loan as either 1) Debt or 2) government grants.
Entities that choose not to follow the Debt guidance should account for the loans as “conditional contributions” under FASB ASC Topic 958-605 if the entity expects to meet the PPP’s eligibility criteria and concludes that the PPP loan represents, in substance, a grant that is expected to be forgiven.
For more details, please refer to the TQA: