How to make sure your loan becomes a grant
Since the Paycheck Protection Program (PPP) was passed by Congress under the CARES Act, businesses across the country have sought to get their portion of the $349 billion worth of relief funds approved to be allocated. At DSJCPA, we have assisted approximately 100 clients navigate the application process and the difficulties that have arisen to date. Our in-house Coronavirus Response Team (CRT) has pulled together a high volume of information for our Clients, ranging from payroll forms to financial statements based on each Bank’s unique requirements. With this assistance and constant consultation, via email and phone, our Clients have successfully filed their application in an efficient manner and are awaiting their longed-for financial relief.
The big question that remains is: Now what?
Each PPP applicant has been in a rush to get their money to keep their business afloat. Often overlooked in the process is the Forgiveness Calculation required at the end of the eight-week period following the receipt of the loan funds. This will require a detailed and well-supported calculation that clearly shows where the money your business received under the PPP was spent. If the money is not properly accounted for or spent on expenses not approved by the SBA, these funds will not be forgiven by the SBA and, instead, will turn into a loan with interest beginning to accrue immediately.
When the self-certification forms are longer than the bank application, you know there is a lot of liability you and your business are taking on to get this calculation right!
Don’t let the haste of getting the money result in more liabilities for you and your business in the end. At DSJCPA, our CRT is comprised of knowledgeable and experienced professionals who have developed subject matter expertise in recent weeks surrounding the PPP and other tax relief programs passed by Congress. Through hundreds of hours of research, webinars, and calls with professionals from various industries, the team has stayed up to date as the situation has developed, putting them in a prime position to provide you with accurate information in real-time. Our CRT can help you plan the most effective and efficient uses for the funds received from the PPP to maximize the benefit to your business over the eight-week period. Additionally, by setting up systems and methods to track the use of these funds, our CRT can work to ensure that your business has a clear and accurate accounting to present to the SBA for your Forgiveness Calculation.
For more information, visit the DSJCPA COVID-19 Information Center to Meet the Team, access the resources we have collected from professionals across many industries, and learn more about how DSJCPA and our CRT can help your business through these challenging times!