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Please note that this blog is based on laws effective on May 2, 2020 and may not contain later amendments. Please contact Cray Kaiser for most recent information.
We last shared some best practices and next steps once you receive your PPP funds. It’s now time to start tracking your use of the funds to determine the amount to be forgiven. To aid you in this process, we’ve prepared a few Excel workbooks which you can download by clicking the link below. Each workbook contains instructions, the loan forgiveness calculator, determination of your FTE (full time equivalent), actual tracking of costs template, a certification template and two examples so you can “see the math” in action.
Last week, the Treasury issued an FAQ to provide a recovery period to public companies that took PPP loans when they had adequate resources. The certification documentation provided in the worksheets above allows you to document how and why the PPP loan funds were considered necessary for your company. For entities with loan funds in excess of $2,000,000, it may be necessary to substantiate this documentation with projections and financial amounts in the event of an audit. It’s best practice to complete these worksheets regardless of your funding to be ready in the event you are asked. Remember those sleepless nights before receiving the funding? Those are the reasons why you needed these funds!
Some of you may already be two to three weeks into your eight-week covered period, so acting fast to do the math will get you better positioned once the loan forgiveness process is in place. We anticipate more guidance in the upcoming weeks and will keep you informed on our blog as we know more.
There has been a lot of narrative around the computations of the loan forgiveness (including our own) and now it’s time to put those numbers to work! Should any questions arise as you complete these calculations with the PPP loan forgiveness templates, please contact Cray Kaiser at 630-953-4900.
These are certainly trying times and we want to reiterate that Cray Kaiser is here for you. As things continue to evolve in light of the COVID-19 pandemic, we at CK are taking additional precautions for the benefit of our team members and our clients.
We want to remind our clients of our portal access and your ability to safely and securely share your information with our team. We ask that you email email@example.com to request your portal access. This will eliminate the need for you to drop off your tax information at our office.
Thank you for your patience and understanding during this challenging time. We wish you, your family, and your business health and safety. We will continue to support you as best as we can while keeping each other’s health a priority. If any changes occur during the course of the next few days, we will update our website.