Payroll Protection Loans & Business Relief Reminders

Updated on April 21 at 9:00 a.m.

Late last week, the funding for the payroll protection program (PPP) loans under the CARES Act was exhausted. Congress is negotiating adding additional funds to the program and is targeting to have these additional funds available as soon as possible. We encourage clients to reach out to their banks if they did not receive a PPP loan with the original funding to be ready to apply when additional funds are provided.

Those businesses that have received or will be receiving PPP loans should establish good accounting practices to track expenses to maximize the loan forgiveness. Loan recipients have eight weeks to use the funds for qualifying expenses such as payroll, rent, utilities and mortgage interest on debt. However, there is limited guidance available on how the loan forgiveness will be calculated. We recommend clients keep a real-time summary of the loan utilization and copies of invoices, payroll summaries, cancelled checks and bank statements to help demonstrate the qualifying expenses. Clients should work with their lenders to understand what is expected for supporting documentation for loan forgiveness.

In addition to the PPP loans, we wanted to remind clients of the other relief options available. Below is a summary of some of the programs for clients to consider and additional details can be found on our COVID-19 Resources page here. This page also has a link to the IRS website where new FAQ’s and resources are being posted.

Please reach out to us, as we are here to help you navigate through these different programs and difficult times.