Paycheck Protection Program (PPP) loan funds are being dispersed and it’s vital to understand the spending and documentation requirements around forgiveness eligibility.
The regulations contain specific spending and documentation requirements that are essential to achieving debt forgiveness under the program. Aprio encourages businesses to be proactive with their lenders, working quickly to apply and understand the requirements for loan forgiveness benefits.
|PPP Loan Funds Guidance & Planning||Loan Forgiveness Accountability & Forecasting||Concluding Documentation|
|Aprio advisors will consult with borrowers on:|
Documentation of meeting needs required for application.
Where funds should be deposited and how to account for spending within the general ledger.
Developing processes to ensure fund utilization on eligible expenditures, including payroll and mortgage.
Regular tracking and forecasting of spending to project estimated forgiveness.
Recommendations for modifying spending to enhance forgiveness opportunity.
|Assembly of documentation required by lenders when applying for loan forgiveness based on SBA guidelines.|
Disclaimer for services provided relative to SBA programs and the CARES Act
Aprio’s goal is to provide the most up to date information, along with our insights and current understandings of these programs and regulations to help you navigate your business response to COVID-19.
The rules regarding SBA programs are constantly being refined and clarified by the SBA and other agencies In certain instances, the guidance being provided by the agencies and/or the financial institutions is in direct conflict with other competing guidance, regulations and/or existing laws.
Due to the evolving nature of the situation and the lack of final published rules, Aprio cannot guarantee that additional changes or updates won’t be needed or forthcoming and the original advice given by Aprio may be affected by the evolving nature of the situation.
You need to evaluate and draw your own conclusions and determine your Company’s best approach relative to participation within these programs based on your Company’s specific circumstances, cash flow forecast and business strategy.
In situations where resources are provided by third parties, those services should be covered under a separate agreement directly with that service provider. Aprio is not responsible for the actions of any other third party.
Aprio encourages you to contact your legal counsel to address the legal implications of the impact of the CARES Act and specifically your participation in any of the SBA programs.