If you've applied for and received the Paycheck Protection Program (PPP) Loan, you might be wondering what's next? Here's what you need to know to take the next steps:
Once the PPP Loan has been received, you have eight weeks to spend the loan. The eight week timeline begins the day you see the loans hit your bank account. The loan can be used for the following expenses:
- Payroll costs
- Healthcare benefits
- Interest on mortgage (*excluding principal)
- Interest on debt obligations incurred before the covered period
In order to maximize PPP Loan Forgiveness, ensure you spend the loan throughout the duration of the eight weeks.
Documentation Needed for Loan Forgiveness
There are several documents you'll need to present to your bank to receive forgiveness once the loan is spent. To plan ahead, here's a list of what you'll need:
- Copies of payroll tax reports filed with the IRS (including Forms 941, 940, state income and unemployment tax filing reports) for the the eight week period following the origination of the loan.
- Copies of payroll reports for each pay period for the eight week period following the origination of the loan. *Gross wages including PTO (which might include vacation, sick, and other PTO) should be reflected.
- Documentation reflecting the health insurance premiums paid by the company for the eight week period should be provided. The premium should include the owners of the company and the group health insurance plan.
- Documentation of retirement plan funding by the employer for the eight week period following the origination of loan should be sufficient. Copies of work papers, schedules, and remittances to the retirement plan administrator should be available.
- Copies of all lease agreements for real estate and tangible personal property should be presented along with proof of payment during the eight week period.
- Copies of all statement of interest paid on debt obligations indicating payment amounts and proof of payment for the eight week period.
- Copies of cancelled checks, statements or other evidence of utilities paid during the "covered period" for the eight week period.
If you need further guidance, please feel free to reach out to our team or take advantage of our additional COVID-19 resources.