Paycheck Protection Program Assistance
Paycheck Protection Program (PPP) loans under the Federal CARES Act Program
On April 3, 2020, banks began processing the first round of potentially forgivable PPP loans to small businesses and independent contractors under the Federal CARES Act. As of April 16, 2020, the PPP program closed to new applicants and those PPP funds are now being disbursed.
Congress has now approved a second round of PPP funding for those entities that missed out on the first pool of funds. For the second round, Congress has expanded the eligible participants to include sole proprietors reporting on schedule C.
The application process can be challenging but it is potentially worthwhile. Once you receive funds, the processes and procedures you implement will impact how much of your PPP loan eligible to be forgiven.
We are here to help.
Now that you have a PPP loan, what’s next?
Now you get to spend the proceeds of your loan! However, you must be intentional in what you spend the money on and when you spend the money.
The actual rules that will determine the amount of your loan that is forgiven are still being finalized. However, if you meet the qualifications, your loan will be eligible to be fully or partially forgiven. The amount will depend on the actual qualifying expenditures your organization makes during the 8-weeks beginning the day that your loan funds are deposited in your account.
Even if you don’t qualify for 100% forgiveness, the interest rate and repayment terms of the non-forgiven PPP loans will be very favorable.
Ideally, you will qualify for compete loan forgiveness. To maximize the amount of loan forgiveness, we encourage you to be proactive in monitoring and tracking how your PPP money is spent.
HKP can help!
Our team of professionals is prepared to respond to your questions and help you maximize the amount of loan forgiveness you can earn.
Key areas that we are focusing on are:
• The application process.
• Designing a system to document compliance with the specific requirements for loan forgiveness.
• Assist you in monitoring company activity related to qualified expenses during the 8-week qualifying term.
• Issue a report on compliance that can be used by your financial institution to determine the amount eligible for forgiveness at the end of the 8-week period.
If we can assist you with the PPP loan program, proactively monitoring your compliance with the program or in determining the amount of your loan eligible for forgiveness, please contact us.