With the forgiveness process now open, accountants, tax professionals and auditors are working around the clock to submit forgiveness applications on behalf of their clients. Without forgiveness, millions of businesses will be saddled with debt they cannot afford and otherwise likely would not have borrowed. The impact of mass non-forgiveness will likely be another major obstacle to economic recovery. Thus, the pressure is on lenders and the Small Business Administration to forgive as many of the loans as legally possible.
There are several steps that you can take to increase the likelihood of Payment Protection Program PPP loan forgiveness:
1. Be thorough. Submit a PPP loan forgiveness application that is clear and contains all the supporting information. Accountants should outline the basis for their calculations. Remember, temporary employees not experienced in financial reviews will be considering many of these applications on behalf of lenders and the SBA.
2. Be conservative. Remember, recent guidance has allowed more flexibility on the timeframe to spend the loan. If using a shorter time frame makes your calculations too close for comfort, extend your review period. For example, rather than use a questionable utility expense, just include one additional payroll for qualifying employees.
3. Be educated. After reviewing the guidance provided by the SBA, go over it in detail with your tax professional. Each business is unique and benefits from different parts of the guidance. It is cumbersome and complex, but knowing the rules will make completing the forgiveness application process much smoother.
Read More: PPP LOAN FORGIVNESS
What’s Next:
We understand the PPP loan forgiveness process can be intimidating but you are not alone, and we are here to help! If you have any questions or if we can be of assistance in calculating your forgivable PPP loan and forgiveness application, please reach out to your R+R financial professional or complete the contact us form.
REYNOLDS & ROWELLA | ACCOUNTING AND CONSULTING
Reynolds + Rowella is a regional accounting firm known for a team approach to financial problem solving. As Certified Public Accountants, our partners foster a personal touch with our clients. As members of DFK International/USA, an association of accountants and advisors, our professional network is international, yet many of our clients have known us for years through the local communities we serve.
The firm has offices at 90 Grove St., Ridgefield, Conn., and 51 Locust Ave., New Canaan, Conn. For more information, give us a call at 203.438.0161 or email us.