Paycheck Protection Plan loans have begun funding and small businesses that were able to get a loan are breathing a sigh of relief.
The SBA continues to create, interpret, and inform about regulations related to the PPP loan that you need to be aware of.
Loan forgiveness is available if the loan is used primarily for payroll purposes. There will be a process to apply and submit documentation for loan forgiveness in the future.
“For many PPP borrowers, it will be key to have two items in place: a strong tax professional and a separate bank account to hold the PPP funds.”
A tax professional is key in helping you determine payroll costs, gather proper documentation for the application process, and will be key in helping with proper documentation for loan forgiveness.
“While the PPP loan implementation has received a lot of criticism, the program is a great stopgap plan in the Covid-19 crisis to help get liquidity to small businesses across the country. For some businesses, it will make the difference in surviving the crisis. In order to get the key loan forgiveness, make sure you are working with a tax professional and that you segregate the loan funding to help with documentation.”