Congratulations if you were able to jump through the hoops and get your paycheck protection program loan approved. Now that you have been approved, once the loan is funded – what’s next?
The loans are to be used primarily for payroll – however, it’s not quite as simple as letting the SBA know that’s what you did. In order to qualify for forgiveness – never having to repay the loan – you need to take certain actions to ensure that you are in compliance with the terms of the loan. It’s a chaotic time, and the rules and regulations for these loans are being created day by day – and sometimes re-interpreted on the fly.
As of this writing (May 1, 2020) the Small Business Administration (SBA) has not yet released the requirements for loan holders to submit the required documentation for forgiveness. The key strategies for many paycheck protection program loan holders will be to have a qualified tax professional prepare their documentation and have a separate bank account so that it’s clear exactly where the money went.
Megan Gorman has an article in Forbes about the process, you can read it here.
We’re here to help. Contact Fit Money CPA to get set you up with everything you need in order to ensure that your paycheck protection program loan will be forgiven to the fullest extent possible.