With the CARES act and popularity of the Payroll Protection Program (PPP) loan, we thought it important to provide you some more information on what we know as of now for the loan forgiveness side of things. This loan has the potential to be forgiven if certain requirements are met, including the loan proceeds spent on qualifying expenses.
It is best to check with your lender and see how they want to receive the information pertinent to the use of the funds granted. They are going to be the ones collecting the documentation to support the spending of the Payroll Protection Program funds. We do not believe the banks will want to receive the information on how the loan is spent throughout your eight week time frame, but they will need the information after-the-fact. We recommend you to start organizing the documents now as the funds are being used.
Please see the attached checklist for items to save for submittal to the banks for the potential loan forgiveness.
Also, please note we have included a request of information as we want to make sure we are here to support you in your time of need. Please take the time to fill out the questionnaire and let us know if you received the PPP loan and/or the Economic Injury Disaster Loan (EIDL). This will help us to best serve you.
If you did receive the loans, we can reach out or schedule some planning to make sure you have your best chance of getting the loan forgiven. If you did not receive the PPP loan then we can look at other options and credits available through the CARES act that may fit your situation.
The forgiveness portion of this loan does, in essence, create taxable income…so be aware of that as well.
Again, one of the best things you can do is know what your lender needs/expects from you; we believe getting organized now with your support documentation is going to make life a lot easier through this forgiveness request process.
Please let us know if you have any questions or concerns.
PPP Loan Forgiveness Checklist
Fill out the PPP Questionnaire Online
Download the PPP Questionnaire
Also, if you prefer to have an appointment to discuss planning or need help putting together the documentation, please set up a meeting or call sooner than later to allow enough time for us to help you with your needs.