Solutions to help ensure you meet the requirements of PPP loan forgiveness
If your business has received a Paycheck Protection Program (PPP) loan from the Small Business Administration (SBA), you may be concerned about meeting the loan forgiveness requirements.
From the launch of the PPP in early April, the SBA has directed organizations to use PPP funds for approved expenses such as payroll, utilities, rent and mortgage interest within the first eight weeks of receiving the funds.
Organizations are now in the middle of putting their funds to use. It’s become clear that the two most critical actions business owners can take is tracking expenses paid from PPP funds and determining whether or not they’re spending funds on approved expenses in the required percentages (e.g., 75% of the PPP funds must be used for payroll expenses).
Wipfli understands the value of loan forgiveness and can help your organization stay on track.
SBA PPP loan consulting
Our accounting professionals help you develop a project plan so you can meet the timeline for PPP loan forgiveness. We provide you with access to the Wipfli SBA PPP Loan Expense Tracking Tool, as well as train you on how to use the tool. Plus, we deliver observations and recommendations based on your specific situation.
Want more support? Let Wipfli handle the tracking and/or loan calculations.
SBA PPP loan expense tracking*
Using the Wipfli SBA PPP Loan Expense Tracking tool and the information you supply, we will:
- Track payroll expenses during the eight-week covered period.
- Track other payroll-related expenses, including health insurance, retirement and state unemployment taxes.
- Track other allowable expenses, including rent, utilities and mortgage interest (if applicable).
- Track PPP loan fund use and remaining available balance.
SBA PPP loan calculation of forgiveness*
Our accounting professionals will:
- Calculate expenses you incur during the “covered period” (the eight weeks following the PPP loan funding date).
- Based on expenses incurred, determine potential required reductions in PPP loan forgiveness, including the calculations necessary for full-time equivalent employees and individual employee compensation levels.
- Calculate the percentage of PPP loan funds for payroll to assess compliance with loan forgiveness rules.
- Provide documentation of our calculation of potential PPP loan forgiveness for your use and records.
Determining your PPP loan forgiveness status and ensuring your compliance is the number one priority. To get started on your PPP loan forgiveness, contact us today.
Watch the free webcast: Loan Forgiveness: SBA Paycheck Protection Program (PPP)
Read the article: PPP loans: Proper documentation and accounting
*Our advice and any calculations will be based on the PPP rules as they exist at that time. You are responsible for the authenticity and accuracy of your underlying supporting documentation, and, unless specifically requested, we will not perform any procedures to verify the accuracy of that information. The ultimate determination of loan forgiveness will be made by your lending institution.