Paycheck Protection Program and YOU. What does it mean for your business?

2020-06-09T11:17:28-05:00 By |

Renee Schofield, CEO
TSS, Inc. – The Safety Specialists

NOTE: This is an actively changing piece of legislation. There may be changes that happen in the coming weeks. Please be certain to follow-up with your CPA/Financial Institution/Attorney to receive the most accurate information.

The Paycheck Protection Program was rolled out by Congress in early April and thousands of businesses immediately began applying.  It didn’t take long for the funds to be depleted, leaving many small businesses in desperate need of support. Fortunately, Congress acted quickly and within a short time, replenished the fund, of which about $120B remains available as of this writing.

While the PPP application process was fairly simple, the forgiveness portion of it may not be. As I have attended multiple briefings, received the forgiveness application from my financial institution, and talked with other business owners, I’ve heard conflicting versions of what people believe needs to happen to maximize forgiveness. The loans in themselves are critically important for small businesses, especially in our industry. But employers should be aware that they need to follow the application process closely and carefully to ensure that they won’t be stuck with an unexpected loan repayment requirement.

Check in with your banker and accountant as you go through the process. Their guidance will be important in helping you to be successful in obtaining the grant portion of the 3P loan. Be prepared to show 941 tax payments, payroll documentation and proof of the number of personnel on your payroll.

By taking time at the front-end, you can make the most of the assistance that is available to you, without facing additional hardship later on.

Below is a list of resources that may be beneficial in assisting you in your decision-making process regarding the various funding options for emergency relief:

Small Business Administration

SBA Paycheck Protection Program Information

US Treasury Department PPP Overview

SBA PPP Loan Forgiveness Application

Small Business Development Center

Entrepreuneur: PPP Forgivable Loans Will be Unforgivable for Many

The bottom line is this: Be mindful of every piece of your forgiveness application. It will pay off to do so.