Companies across the country are holding Paycheck Protection Program funds given to them as an incentive to retain employees during Stay-At-Home orders and other pandemic-related economic fallout. Recipients were given an 8-week window to distribute the funds and for some, that window is closing very soon.
If managed properly, the PPP loan will be forgiven 100%. This is great news! Now companies just have to figure out exactly how to complete their application for forgiveness and meet the all-important threshold that demonstrates 75% of the funds went to "payroll costs." If that's met, and the other 25% is shown to have been spent on specific other qualifying expenses, these business owners will be in the clear.
But there are still plenty of questions being asked and not all answers have been drafted/published yet. LBW encourages all PPP recipients to visit this page often as we will update the list of resources below. There are many sources of information and more still to come.
Listed below is a log of resources to help PPP recipients understand the program's loan forgiveness forms and guidelines.
Paycheck Protection Program Loan Forgiveness Application From the U.S. Treasury Department's website
Guide to PPP Loan Forgiveness - Published by the U.S. Chamber of Commerce and distributed locally through Chambers across America
Update: FAQ Regarding Loan Forgiveness Under the Paycheck Protection Program - May 18, 2020: Written by Keith T. Zimmet, President, Managing Shareholder at Lewitt Hackman. This post addresses "Covered Period" vs. "Alternative Payroll Covered Period", costs incurred or paid outside the 8-week window, calculating FTE's or wage reductions, and more.