The rules governing PPP Loan expenditures and calculation of loan forgiveness are complex. Notwithstanding subsequent regulations, questions remain and recent guidance indicates the Department of Treasury and SBA intend to closely scrutinize borrowers’ eligibility as well as whether loan proceeds were expended appropriately and entitled to forgiveness.
PPP borrowers should keep careful records to document: the COVID-19 Pandemic’s negative financial impact on their business; that every penny of loan proceeds was spent on allowable uses (payroll, rent, interest, and utilities); at least 75% of the loan was spent on payroll; the number of employees and their rates of pay before and during the covered loan period; and to maximize the PPP Loan Forgiveness amount.
Sign up below to download a copy of the Capes Sokol “Guide for the Paycheck Protection Program, Compliance Considerations, and Application for Loan Forgiveness” and gain access to the interactive guide on the Capes Sokol Learning Portal.
Please reach out to discuss specific services we may offer your organization as you navigate through the PPP process.
If the form does not appear automatically, please click here.
Please note, the Internet Explorer web browser is not supported.
The content in this document does not constitute legal advice, may be geographically or time sensitive, and is for informational purposes only. While we have endeavored to incorporate SBA and Treasury guidance issued through May 22, 2020, please be aware that such guidance is subject to legislative and regulatory revision. Any opinions expressed in this document are the opinions of the individual author(s) and may not reflect the opinions of Capes Sokol or any other individual attorney. You should not act upon the information presented herein without seeking the advice of legal counsel. The choice of a lawyer is an important decision and should not be based solely upon advertisements.