Paycheck Protection Plan Forgivness Process
After reviewing the SBA’s Paycheck Protection Plan forgiveness application, we’ve come up with a 4 Step process to have your Paycheck Protection Plan forgiven.
Step 1: Document Spending
Eligible Payroll Costs:
Eligible Non- Payroll Costs: Non-Eligible Costs:
**For your Paycheck Protection Plan to be forgiven, a minimum of 60% must have been used to cover Eligible Payroll Costs. No more than 40% of Eligible non-payroll costs can be used toward Paycheck Protection Plan forgiveness. If you used more than 60% of your PPP funds to cover eligible payroll costs, then we will use your residual eligible non-payroll costs to make your PPP grant forgiven. **
**Example: If you received $10,000 in PPP funds you must spend $6,000.00 on Payroll. The $4,000.00 left may be reduced to pay eligible non-payroll costs. If you used $8,000.00 in PPP funds to cover Payroll, the $2,000 left may be reduced by eligible non-payroll costs. **
Step 2: Prepare Calculations
Eligible Payroll Costs- Acceptable Documents
Eligible Non-Payroll Costs- Acceptable Documents
Lease Agreements- Rents paid
** If a salary was reduced by 25%, or hours were reduced by 25% or more during 01/01/2020-3/31/2020 your Paycheck Protection Plan will have a partial unforgivable amount. **
Step 3: Request Forgiveness
Your bank will reach out to you when they have opened their forgiveness portal. Please forward me that your forgiveness portal has opened and begin appropriate Paycheck Protection Plan forgiveness form.
Step 4: Track Response
Once we submit your Paycheck Protection Plan forgiveness application you will receive an email and response from the SBA like you did when you received your PPP funds. If the SBA does not grant a full forgiveness of your PPP grant, we can apply for re-forgiveness. Full forgiveness is based on the 60/40 rule explained above.
**Our Services will be on a first come first serve basis. Accounting for Forgiveness will be billed for.**