By Brian E. Ravencraft, CPA, CGMA, Partner at Holbrook & Manter, CPAs
So, you have applied for and received a loan under the Paycheck Protection Program (PPP Loan). What should you do next to ensure that you are tracking and using the funds on eligible expenses to qualify for loan forgiveness?
The borrower is eligible for full forgiveness of the loan principal if the funds are used on payroll costs, interest payments on mortgages, payments of rent on any lease and utility payments. Due to high demand for the PPP loans, 75% of the forgiven amount must be used for payroll costs.
Forgiveness is based on the employer maintaining or rehiring employees and maintaining wage levels by June 30, 2020. The amount forgiven will be reduced if you decrease your full-time employee count compared to the prior year and/or by the reduction in pay of any employee beyond 25% of their prior year compensation.… Continue readingRead More »