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Paycheck Protection Program (PPP) Loan Services

ppp loan forgiveness The U.S. Department of the Treasury and Small Business Administration (SBA) has taken the initiative to financially help businesses and organizations in the form of PPP loans so that they can keep their workforce employed during COVID pandemics instead of firing them. PPP loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap.

The PPP loan forgiveness program is to motivate the organizations to keep working with their existing employees and continue paying their regular wages. The PPP loan can be made forgivable by utilizing the loan amount according to the SBA terms and conditions as follows –
  1. Employee and compensation levels are maintained.
  2. The loan proceeds are spent on payroll costs and other eligible expenses, and utility costs
  3. At least 60 percent of the proceeds are spent on payroll costs

President Biden signed The American Rescue Plan on March 11, 2021, which provides additional funding of $7.5 Billion for the PPP, which expands the eligibility of the following:

  1. Businesses with NAICS code beginning with 72 and employs less than 500 employees are eligible for PPP grants.
  2. Digital news service provider and certain not-for-profits are also included,
  3. Venue operators are permitted to apply for both PPP and Shuttered Venue Operators Grant (The PPP amount received after December 27, 2020, would be reduced from the SVO grants)
  4. Restrictions on borrower eligibility based on non-fraud felony conviction and student loan delinquency are eliminated. It also extends the PPP for non-resident citizens who have Taxpayer Identification Number.


SBA is reopening the Paycheck Protection Program (PPP) for First Draw Loans again in the week of January 11, 2021, for those who have not yet availed the loan. First Draw PPP Loans can be used to help fund payroll costs, pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.


The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Service Industry, the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Ensuring Access for All

SBA continues to call upon its lending partners, including Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities. At least $15 billion is being set aside for First Draw PPP loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. And $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or

Who can apply for PPP Loan

All businesses – including nonprofits, Veteran’s organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.

Terms and Conditions to Access PPP Loan Forgiveness

Applying and accessing the PPP loans is a complicated and time-consuming process, but the more challenging task is to get the PPP loan forgiveness. It's not a cup of tea for everyone to let an organization perfectly fit in accordance with the terms and conditions compliant to government guidelines to make them eligible for full loan forgiveness.

Click here to begin your PPP Loan Forgiveness Information Request Form.

  1. The organizations have to use a minimum of 60% of the loan amount on their employee pay; the remaining 40% can be used to pay other bills.
  2. Have 300 or fewer employees.
  3. They are bound to spend the funds within 24 weeks.
  4. They can also include incurred costs.
  5. Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
  6. They have to maintain the full-time staff; it should be the same or more than what they have while applying for the PPP loan.
  7. They also have to maintain the payroll costs, which should be the same as what it is while applying for the funding. In case anyone is found paying reduced pay, they will have to pay back the equivalent loan amount.
  8. A business is ineligible for PPP if it is at least 20 percent owned by an individual who has either an arrest or conviction for a felony related to financial assistance fraud within the previous five years.

What Cares Act PPP Loan Forgiveness Consulting Service Include

The CARES Act created the Paycheck Protection Program to offer non-payable loans to eligible small businesses to keep paying their employees even during COVID pandemics. To access the PPP loan forgiveness, companies need expert guidance and professional consulting. There are many ways the team of experienced accountants, auditors, and tax professionals here at Harshwal can help them. Let's have a look at some of the services that our PPA loan forgiveness consulting includes:
  1. Review of PPP loan application funding
  2. Analysis of the applicable FTE workforce reduction and pay reduction.
  3. Evaluation of PPP loans proposed spending and guides you to access the full loan forgiveness.
  4. Outlining the forgiveness of PPP loans with Harshwal's proprietary estimator.
  5. Help you apply for PPP loan forgiveness.

Paycheck Protection Program (PPP) Loan Calculation & Determination

The range of complications, challenges, and actions required to deal with the COVID pandemics varies as we move from one business to another. Every business needs a customized approach and strategy to make things happen accordingly.

Harshwal & Company LLP has a specialized team of professionals that can help you calculate and manage your accounts and books most efficiently. We will guide you on the most effective places to use your loan amount and the way to access maximum PPP loan forgiveness. Let’s have a look at some of the other area we can help you in:
  1. Compute costs of payroll paid in cash.
  2. Accept and find out the client data capacity covered in input sheets.
  3. Determine applicable wage or hourly pay reduction.
  4. Estimate average FTE and reduction in it.
  5. Determine safe harbors and loan reduction limitations.
  6. Calculate non-cash and cash compensation to owners.
  7. Compute non-cash reimbursement.
  8. Interface with client’s lending institutions.
  9. Conduct a characteristic inspection of the PPP Loan Application for precision and correctness.
  10. Supervision on assembling needed documents to be submitted and maintained.
  11. Calculation of costs other than payroll.
  12. Professional follow-up after the submission of PPP loan application.

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