What do I do now that my company has received a PPP loan?
Well first and foremost, that’s great news! Here are our suggestions on how what to do now:
1. Organize your expenses for rent, utilities and business mortgage interest (if any). Be sure to have an invoice from your landlord for the next two months' rent as well as all utility invoices and mortgage statements for the next 8 weeks. Keep in mind these costs can only be used to qualify up to 25% of the forgivable debt.
2. If you’ve not had to lay off employees, then continue to run payroll as normal, keeping copies of your payroll detail reports for each pay period.
3. If you’ve had to lay off or furlough staff, now is your chance to bring them back for 8 weeks of wages.
4. Payroll costs account for no less than 75% of your forgivable debt. Subcontractor payments will not qualify as payroll costs.
5. If you accounted for health insurance, retirement benefits or other insurance costs in your initial PPP loan application, make sure to track these costs as well over the next 8 weeks and have documentation to support those costs like invoices from insurance carriers, retirement plan payments or
6. Any portion of your PPP loan that is not forgiven must be repaid within two years at 1% interest and there is no prepayment penalty.
Remember the 8-week period starts from the date the lender makes the first disbursement to your account.
Forgiveness must be requested from the bank you received your PPP loan with.
If you need assistance with preparing your forgiveness with your bank, don’t hesitate to reach out to us. We’re here to help.