PROSPER OR PERISH #4. Click here to read past issues.
We are now 30 days into the Period from the introduction of the CARES Act until today and WOW, have things changed!
$350 Billion in PPP loans have been approved, and the funding is trickling out to loan recipients. The Banks have been tasked with the implementation of the funding, and are carefully trying to provide the funds while not jeopardizing themselves in the process. Distributing the loans are only half the problem- there is an implicit assumption that this is forgivable money provided by the government; however, IT IS NOT THAT SIMPLE.
The law passed by the Congress is vague on how to calculate expenses to be forgiven, and Banks will make their own individual attempts to create documentation requirements, and rules on what can and cannot be claimed for forgiveness. For a detailed explanation of the complexity, I refer you to an article discussing this.
Ten Things We Need To Know About Paycheck Protection Program Loan Forgiveness
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, a $2.3 trillion relief package designed to help individuals and businesses weather the economic damage caused by the COVID-19 pandemic.Click To Read Article
If you have been approved and received your money, your clock of eight weeks has started. If you have been approved, but not received your money, the clock will start when it is funded. If you have not applied or been approved, you will have to wait until this week when we expect more funding.
BUT, will the rules change with a new bill?
If you are confused, you have a right to be.
Also, be aware, the Economic Injury Disaster Loans and Main Street Lending programs are still active directly with the SBA.
If you feel helpless, or just confused, give us a call at Trusted CFO Solutions – 855-236-2384. We have a dedicated staff available to assist and consult with you on measures and steps to take to both maximize the help you get, but also have forgiven the greatest amount available in your tax-free reduction of this loan.
Don’t be alone. A team approach at this time is best. Remember, the heavy lifting is beginning. You MUST plan to restart the engine of your business, and reinvent how you serve customers in a permanently altered business climate. We are also here to go down that path with you with eyes wide open as we learn what that new business world will look like together.
About The Author
Stephen Gross, CPA, CGMA, CVA, CFE — EVP of Hegemon Holdings and Co-Founder of Trusted CFO Solutions — is a big picture thinker and connector, with 40 years of rich and diverse experience in the C.P.A., business consulting, and venture capital worlds. Steve was an early adopter and evangelist of cloud-based accounting, as well as the concept of a virtual C.F.O. or Controller as a method of outsourcing the position in small businesses and startups. Learn More About Steve…