You've received your PPP loan, now what?

The original Paycheck Protection Program was passed as part of the CARES Act by Congress  on March 27 with the intention of helping small businesses keep their doors open and employees paid during the Covid-19 pandemic. The funds were depleted in just 13 days. On April 22, Congress approved additional funding to the PPP. Both times, there was a massive rush to apply for funds and Sound Tax and Accounting worked tirelessly to help each of our clients who asked for assistance in applying for loans and grants. Now that small businesses are starting to receive their funds, we wanted to talk to you about the forgiveness aspect of these grants/loans and how we can help with that, too.

The Treasury Department has issued a live FAQ document that has been updated over 15 times since the original legislation was passed. The HEROES Act currently being debated in the Senate may further change the specifications for calculating for PPP loan forgiveness. We anticipate additional legislation and Treasury department guidance to be issued, amended and updated several times for the duration of the Covid-19 pandemic. 

Our monthly Executive level clients can rest assured we are tracking, calculating and reconciling your loan and forgiveness amounts as part of your monthly services. We have a robust tracking system that is updated with each new clarification from the government so you will be fully prepared when it comes time to apply for forgiveness.

If you have applied for or received PPP funds but are not a client and are managing your own loan forgiveness, we can still help. You will need a system for tracking forgivable expenses that is flexible and able to evolve with the changing regulatory environment. Here is a great resource we recommend for calculating loan forgiveness, as the legislation stands right now. 

We are staying abreast of ever-changing legislation and adjusting our tracking processes as needed to keep our clients prepared. We strongly encourage any client who has applied for or received PPP funds to partner with us to manage the loan tracking so you can focus on getting your business back on its feet. Please contact us for more information.