Paycheck Protection Loan Forgiveness Guide
Apr 17, 2020
The Paycheck Protection Program (PPP) has gathered more attention in a short period than any business topic in recent memory – and for good reason. It provides businesses with a much-needed lifeline to get beyond the current crisis by use of a potentially forgivable loan.
Once loan proceeds are received, attention must be turned to strategic uses of the loan proceeds. We have prepared a detailed white paper that can be used as a guide for the paycheck protection loan forgiveness process.
Executive Summary of Key Action Steps
- Understand that loan forgiveness is not automatic and will require planning and management. Planning must begin immediately upon receipt of loan proceeds.
- Understand the key points in managing loan funds strategically.
- Deposit the loan proceeds in a separate account to the extent feasible. While not required, it may assist with future tracking and documentation.
- Understand the four eligible expense categories.
- Do not manage your business for “forgiveness at any cost.”
- Understand the key metrics (headcount and wage continuation) in determining loan forgiveness.
- Understand the documentation required to achieve loan forgiveness.
- Contact Kirsch CPA Group at 515-858-6040 to assist you through the forgiveness process.
There are many unanswered questions regarding the eligible uses of loan proceeds and the requirements to achieve paycheck protection loan forgiveness. We monitor developments continually and will update this Paycheck Protection Loan Forgiveness Guide as appropriate.
If you are unsure of the next steps, or just need more help developing a solid plan for your business, reach out to your Kirsch CPA adviser for more information or advice at 513.858.6040.