COVID (Corona Virus) has impacted the global health, economy, and financial infrastructure drastically. The U.S. Department of the Treasury and Small Business Administration (SBA) has taken the initiative to financially help companies in the form of PPP loan, so that they can pay their employees during COVID pandemics, instead of firing them.
The PPP loan forgiveness program is to motivate the organizations to keep working with their existing employees and continue paying their regular wedges. The PPP loan can be made forgivable by utilizing the loan amount according to the SBA terms and conditions. If anyone found obeying the terms will be obliged to pay back the loan amount with interest.
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.
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.
They are bound to spend the funds within 24 weeks.
They can also include incurred costs.
They have to maintain the full-time staff; it should be the same or more then what they have while applying for the PPP loan.
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 found paying reduced pay, they will have to pay back the equivalent loan amount.
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:
- Review of PPP loan application funding
- Analysis of the applicable FTE workforce reduction and pay reduction.
- Evaluation of PPP loans proposed spending and guides you to access the full loan forgiveness.
- Outlining the forgiveness of PPP loans with Harshwal's proprietary estimator.
- 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:
- Compute costs of payroll paid in cash.
- Accept and find out the client data capacity covered in input sheets.
- Determine applicable wage or hourly pay reduction.
- Estimate average FTE and reduction in it.
- Determine safe harbors and loan reduction limitations.
- Calculate non-cash and cash compensation to owners.
- Compute non-cash reimbursement.
- Interface with client’s lending institutions.
- Conduct a characteristic inspection of PPP Loan Application for precision and correctness.
- Supervision on assembling needed documents to be submitted and maintained.
- Calculation of costs other than payroll.
- Professional follow-up after the submission of PPP loan application.