Please schedule time with our PROs if you’d like to evaluate any of your PPP Fund Application, business loan options, or need any other assistance.
PPP Fund Application Extended
If you have been planning to apply for a Paycheck Protection Program (PPP) loan but have not yet had the opportunity to do so, we want to share some good news with you. On July 4, 2020, the Federal government signed into law an extended availability of loans under the PPP until August 8, 2020, or until funds run out. Previously, the final day to apply for a PPP loan was June 30, 2020. Though August 8 is just a few weeks away so find an eligible PPP lender and apply now.
As of June 30, 2020, the remaining amount of funds left to distribute equates to over $130 billion.
PPP Funds Are Designed to be 100% Forgiven
As a reminder, PPP loans are designed to be 100% forgivable as long as the proceeds are spent in accordance with program rules. PPP loans are available based on ten weeks of payroll costs in a specified base period. For more information, please see our PPP loan forgiveness blog post.
IMPORTANT: Track the Utilization of Funds to Safeguard Loan Forgiveness
If you have already received the funds, are you taking the proper steps to distribute the loan amount in accordance with the forgiveness requirements?
The PPP is not similar to a normal SBA loan. In this specific instance, you will be able to not have to pay back the funds if you use these funds towards the following expenses:
- Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits
- Mortgage interest—as long as the mortgage was signed before February 15, 2020
- Rent—as long as the lease agreement was in effect before February 15, 2020
- Utilities—as long as service began before February 15, 2020
These funds must be distributed, tracked, and reported correctly or else the lender may not approve the funds to be forgiven. Without proper guidance from your accountant, you will be stuck with having to pay back a loan.
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This is for informational purposes only. We are a firm specializing in accounting & bookkeeping, tax planning, CFO, payroll, and wealth management services. If you are interested in hearing more about our services, please schedule time with us.