It feels like every other day there’s new about the PPP loan followed by just as many questions about how to get it, manage it, or get forgiveness-ready with it. That’s why we’ve stepped up our firm efforts to help business owners who are the most in need of support with the PPP loans right now.
A recent Journal of Accountancy article highlights the most recent guidance and hits home some of the most important issues around PPP loan forgiveness, some of which have stayed the same since the loans became available.
What’s Staying the Same
In order to get loan forgiveness, you still need to spend the funds within the eight week period referenced before.
At least 75% of the funds from the loan must be used to cover payroll costs in order to get PPP loan forgiveness.
If you’re a business owner, we can help you ensure that you get and use the funds in the right way while also understanding the long-term tax implications of these complicated matters.
Due to the fast-changing nature of some of these programs and their specifications, it’s a good idea to already have a relationship with a trusted advisor who can help you figure out what’s most applicable to you. For example, Congress might vote to extend the payroll from 8 weeks to 16 weeks, giving you a longer time to distribute those funds to payroll. Trying to stay ahead of the curve might feel impossible as a business owner right now, and that’s why we’re here to help you as these new changes and updates come out. Some critics have argued, for example, that the 8 week period doesn’t give business owners enough time to adapt to the major changes they’ve had to adjust to in the midst of the pandemic.
To learn more about the most recent changes and what you need to keep in mind, schedule a phone call with us today.