Hi Kristine,
It is not correct to record loan proceeds as income.
As I described in my original post on this thread: Loans are liabilities, so you need to a liability account to receive the proceeds. The forgiveness, when granted, is nontaxable "income" even though no cash is received. This amount goes into a new non-taxable income account, (perhaps named "PPP Loan Forgiveness") which immediately pays off the loan liability through a journal entry.
Entering both transactions in a single income account leads to problems if the proceeds and forgiveness happen in different years (2020 and 2021), or if the loan isn't completely forgiven.
As always, I am open to better ideas or a streamlined approach. I think Intuit is working on that.
From April 27, 2020 post
"As for recording the loan in QuickBooks, our Development Team is currently working on an update for the program that will allow you to record the loan forgiveness correctly."
