PPP Loan Accounting Q&A

By Derek Johnson, CPA

My organization has obtained a Paycheck Protection Program (PPP) loan – what can the proceeds be used for in order to be forgivable?

How do I record the receipt of the funds – is it debt or a contribution?

How do I record and separately identify qualifying expenses?

How do I record revenue once the conditions of the loan are substantially met?

Additionally, if the organization estimates that a certain portion of the loan will not be forgivable, interest should be accrued in the amount estimated to be repaid.

Derek Johnson, CPA | Supervisor