PPP Forgiveness Next Steps
The Paycheck Protection Program has provided vital funds to many of our clients during these challenging times. We’re so very grateful that we’ve been able to assist with securing these loans. Unfortunately, over the past 2 weekends the SBA has released guidance regarding forgiveness that is dreadfully complicated for clients. The forgiveness application is a complex document that will take time, knowledge and skill to fill out accurately, and requires substantial documentation to prove appropriate use of the PPP funds. We recognize this problem, are closely monitoring all guidance (while crossing fingers for some simplification!). We recognize the importance of reaching maximum possible forgiveness for your business and are prepared to help.
If you would like assistance from BakerStarrett for this application, we ask the following:
1. Please gather your non-payroll forgivable expenses. At this time, these consist of:
- Copies of business utility bills paid & proof of payment (voided check, bank or credit statements, etc.) in the 8 weeks following the receipt of your PPP loan, as well as the very next utility bill for each:
- Natural Gas (or Propane)
- Phone/Cell Phone
- Cost of gas used in your business vehicle
- Copies of lease agreements (must be dated before 2/15/20), and proof of rent paid in the 8 weeks following the receipt of your PPP loan, as well as the very next payment for each
- Building/Land Rent
- Equipment Leases – consider items such as
- Copier leases
- Benefits info (technically these fall into payroll category, but wouldn’t necessarily be included in you payroll reports). Again, please include what was paid in the 8 weeks, as well as the very next payment made following the 8 weeks expiration.
- Retirement account contributions made for employees
- Health insurance paid for employees
2. If you’re a current BakerStarrett payroll client, we will pull payroll information for you (no further action necessary at this time). If you currently process your own payroll or use a 3rd party payroll processor, the following will be needed:
- Copies of your federal and state payroll tax returns for 2nd Quarter 2020 (these will be prepared in July)
- Copies of payroll reports for checks written in the time period starting with the day you received your loan, ending 8 weeks from that date. One report including the date range is satisfactory (i.e. a loan received on April 20th would result in a payroll report for 4/20-6/14 (April 20th plus the following 55 days)). This report should include gross wages and hours paid for each employee. If hours are not on the report, please indicate number of hours for each employee (40 is sufficient for salaried employees that work full time).
- Copies of the payroll reports for the next paycheck following the end of the 8 weeks. This does need to be separate from the 8 week report listed above. This report should also include hours as well as gross wages for each employee.
- Additionally, reports for the following time periods will be needed:
- Seasonal Employers – Additional information may be necessary. We will discuss this further on a case by case basis.
3. Collect your copies of the PPP loan documents that you signed, including the date that you signed documents & received the funds, as well as the total amount of funds received.
4. If you received an Economic Injury Disaster Loan (EIDL) advance ($1000-$10,000) please provide amount received, date, and application number from the SBA.
5. Obtain information from your lender as to requirements to submit documents and application for forgiveness. Each lender has a different process. Some will be requiring an online application, some will require a paper application or document upload.
6. Contact our office to schedule a “PPP Appointment” time to review documentation with our professional team members and finalize information submission with your lender. We will ask that you send documents listed above to us ahead of the appointment time. Appointments will be available in person or via phone/internet in conjunction with computer screen sharing technology.
While we were able to assist with applications for loans without charging for our services, due to the complexity of the forgiveness calculations required and the expected volume of time our team members will be required to invest in this process, we will need to charge a fee for the time involved in the forgiveness application. Billing will be based upon the time involved, the number of employees on payroll for the time periods listed above, and the volume of transactions for non-payroll forgiveness. We expect that these fees will range from $250-$2500 for our clients (fees are expected to be nominal in relation to loan size). Please bear in mind that our clients’ sizes and therefore loan sizes ranged dramatically, hence the fee range.
If you would like a quote for your application for forgiveness prior to scheduling an appointment for assistance, please email firstname.lastname@example.org.