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PPP- Next Steps After Receiving Funding

Businessman video calling his Accountant to discuss the Payroll Protection Plan (PPP) funding.

PPP- Payroll Protection Program: Next Steps if You’ve Received Your Funding

You’ve received your funding- congratulations. Now, you must document everything and submit your loan forgiveness application to request that your loan will be forgiven.

Loan Forgiveness Information:

  • Covered period is the 8 week period beginning on the date of the origination of the covered loan– any eligible costs paid for with loan proceeds outside this period are not eligible for forgiveness.
  • Eligible for forgiveness on payroll costs, interest on mortgage obligations, rent, & utilities only.
  • Submit an application for forgiveness that includes:
    • Number of full-time equivalent employees on payroll and payroll rates (includes payroll tax filings)
    • Canceled checks, payment receipts or other documentation verifying interest, rent & utility payments
  • Documentation is a MUST to qualify for forgiveness
  • Lender shall issue a decision within 60 days
  • Forgiveness would NOT be included in taxable income
  • There is a reduction in forgiveness based on maintaining employment determined by a ratio of dividing FTEs during the covered period by FTEs during the period of the preceding year (or the FTEs from January 1, 2020 through February 29, 2020- if that’s what was used to base the loan). And/or if total salaries (of an employee who makes less than $100,000) are reduced in excess of 25% of the total salary of an employee during the most recent full quarter–this basically means you need to maintain the same level of rates of employees.
  • If you currently have a reduction in employees from the period of February 15, 2020 through 30 days from enactment date of this act from the previous year due to layoffs and you bring those people back by June 30, 2020 there is no reduction
  • If you have received the $10,000 advance under the EIDL your forgiveness will be reduced by that amount.

*Disclosure: The material contained within this email is for general information purposes only and should not be relied upon as a basis for making any business, legal, or other decisions. As always, we encourage you to contact your Accounting and Legal team for guidance.

 

Learn more about ACC Telecom by visiting our website at www.acctelecom.com.

 

 

This entry was posted on Friday, May 8th, 2020 at 12:31 pm. Both comments and pings are currently closed.