At some point it will have to be counted as earnings. PPP is designed to cover labor costs, so it would basically reverse SGA expenses. It will likely happen if/when the loan is forgiven. I"m not sure if they count it as direct revenue at the time it's forgiven or if they amend previous reports and lower SGA expenses over the duration the loan was active. I think congress specifically stated that PPP loans are not to be included in taxable income. I just did a search and it looks like it will show up as "other income" on the income statement and be added to the bottom line but not taxed. But it's a one time thing, so I doubt the market will react to the extra earnings at all, if anything it will just react to the amount added to the assets on the balance sheet since it will be cash, which won't be much. A couple pennies per share, which already the spread of the stock price in any given day.
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