We hope you are all well and getting back up and running in a safe manner.
As promised, attached is our Paycheck Protection Program (“PPP”) loan forgiveness workbook. We have also attached a short instructional video to show you how to use it. As the calculations are complicated and we are accountants and not programmers, there are some limitations to the workbook; however, it should give you a good picture of where you stand regarding PPP loan forgiveness. Before using the workbook, please familiarize yourself with the limitations, which can be found on the “Instructions” tab.
As some of you may have seen, the House passed the Paycheck Protection Flexibility Act of 2020 yesterday. This is a separate bill that relaxes some of the PPP loan and forgiveness requirements as follows:
- Extending the expense forgiveness period from eight weeks to twenty-four weeks
- Reducing the 75 percent payroll ratio requirement
- Eliminating 2-year loan repayment restrictions
- Allowing payroll tax deferment for PPP recipients
- Loosening the FTE reduction loan forgiveness provisions
- Extending the June 30 rehiring deadline
As I mentioned in the webinar, as guidance has been issued, it has generally been borrower-friendly and this is no different. There is a similar bill in the Senate and we are hoping to see this passed, reconciled and signed into law shortly. Again, this is NOT law yet, but we are hoping that it will be law as soon as next week. For the moment, our advice is to continue to plan for the worst (the current PPP forgiveness rules) and hope for the best (Paycheck Protection Flexibility Act of 2020).
If these rules change, we will update our workbook and send it out when available. At that point, for most of us, it should be more a matter of doing everything we need to do to ensure that the full PPP loan will be forgiven, without the planning and scrambling going on now and potentially only receiving partial PPP loan forgiveness.
Thank you for your time and please let us know if we can be of further assistance.
To download our updated workbook, click here.
View the video below for an in-depth tutorial on how to use our workbook.
For a replay of the webinar, click here.
To download our PowerPoint, click here.