COVID-19 Update: Beaird Harris has shifted a significant number of our team members to work remotely.
We continue to serve and care for our clients, just as we always have, and are available by phone, video or email.
Beaird Harris will be closed on Friday, July 3rd in observance of the Independence Day holiday.
April 20, 2020
If you have received approval for your PPP loan, what’s next? It is time to spend the money on qualified expenses AND document it appropriately.
As a follow up to our post on calculating PPP loan forgiveness, the following is provided to assist with substantiating expenses needed for loan forgiveness. Please note your lender will ultimately determine what is needed, but this should give you a good start on solid record keeping and documentation.
All expenses for this purpose will be those paid during the 8 weeks following receipt of your PPP funds. After this 8 week period, a borrower seeking loan forgiveness will be required to submit an application to the lender which generally must include:
The CARES Act expressly requires that the borrower be able to adequately document the use of the funds in order to obtain forgiveness. Good record keeping and bookkeeping will be critical for getting your loan forgiven – you’ll need to keep close track of eligible expenses and their accompanying documentation over the eight weeks.
PPP Funds Tracking Recommendations:
The borrower will need to certify that:
We anticipate that banks will be informed by the SBA that loan forgiveness will be provided on a very rigid basis. Companies that have meticulous, verifiable records will endure this process much better than those who don’t maintain such records. As we mentioned in a previous post, we expect banks will be looking closely at documents for potential fraud. You should be careful about items that could be construed as such, even if that is not your intent.
As always, we are here to help. If you have received a PPP loan, please reach out to your Beaird Harris team and let us know the following:
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