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:
No Professional Advice, Client Relationship, or Reliance on Information
Please note that any information or content on our Website, or any forms or tools on our Website which allow you to submit information or make calculations, and your use thereof, are not intended to provide any kind of professional advice, consultation or service, including but not limited to, legal, accounting, tax, or business advice. Nor does any such information, content, forms, or tools, or your use thereof or reliance thereon, create or constitute an attorney/client, accountant/client, or consultant/client relationship. You should therefore not use our Website or reliance on any information, content, forms, or tools on our Website as a substitute for any kind of professional advice. Rather, you should consult with a licensed professional, including one employed by our Company, for any accounting or tax questions you may have. You agree that we will not be liable to you or to any third party to the extent you treat or consider any information, content, forms, or tools on our Website as constituting any kind of professional advice. The information and content, including but not limited to forms and tools, presented on or made available through our Website are made available solely for general information purposes. We, therefore, do not warrant the accuracy, completeness or usefulness of any such information, content, forms, or tools, and any reliance you place on the same is strictly at your own risk. We disclaim all liability and responsibility arising from any reliance placed on such materials by you or any other visitor to our Website, or by anyone who may be informed of any of its content.
Our Website provides illustrative lists of services that we provide. Nothing contained on our Website shall be construed as an offer or guarantee to provide any particular services to you, nor shall anything on our Website be construed as a direct solicitation for employment by any persons, companies, or organizations. Prior results we have obtained for others do not guarantee a similar outcome.