PPP Loan & Forgiveness
Many small business owners have applied for Paycheck Protection Loans, created under the CARES Act as an incentive for employers to maintain payroll during the COVID-19 pandemic.
What is the incentive?
If you meet certain requirements under the program, up to 100% of the loan proceeds may be forgiven, and in addition, there will be no income tax implications! Notably, the SBA will fully forgive all loans under the Paycheck Protection Program, provided that all borrower requirements and documentation are met.
Wall Titus can assist you in calculating your average monthly payroll for the loan application as well as compliance with the requirements of the loan forgiveness program.
The Wall Titus team will help protect your responsibility and create necessary proof of compliance with the terms of the Paycheck Protection Program Loan Forgiveness Plan.
- Payroll Costs
- Group Healthcare Benefits (including insurance premiums) and retirement benefits
- Paid sick, medical, or family leave where no tax credits were taken (not those under FFCRA)
- Employees’ salaries, commissions, or similar compensation
- Payments of interest on any mortgage obligations (not including prepayment fees or payment of principal on the mortgage itself) in place as of February 15, 2020
- Rent (including rents under a lease agreement) in place
Considerations and How Wall Titus Can Help
- Determining the optimal bank account in which to hold PPP loan proceeds
- Impact of rehiring terminated employees on loan forgiveness
- Impact of reduced employee salaries on loan forgiveness
- 8-week budget for PPP loan proceeds
- Exposure for partial PPP loan forgiveness
- Due diligence and coordination with banks
- Tax planning and strategy related to CARES Act
Having Wall Titus on your team will protect your responsibility and create necessary proof of compliance with the terms of the Paycheck Protection Program Loan Forgiveness Plan.
How can we help?
Wall Titus will provide final exam notice to ensure requirements for PPP loan forgiveness provisions are met, which include:
- At least 75% of the PPP loan proceeds must be used for payroll costs
- Salary Levels must be comparable to measurement periods before the covered forgiveness period
- Loans are used to offset no more than eight weeks of eligible expenses
When to Qualify?
If you haven’t applied for the PPP loan, Wall Titus is here to assist throughout the entire process and we encourage engaging our team members at the onset of the loan application process.
If you have applied and were approved for the PPP loan, it is imperative to ask for assistance prior to receipt of the PPP funds to make sure a structure is in place to (a) properly account for the use of the funds and (b) to get the most amount of forgiveness available to you. Wall Titus can assist entities by providing guidance in documenting the use of funds, in order to maximize accuracy and to make sure you are timely in your loan forgiveness documentation requirements.
Benefits Wall Titus brings
- Assist in calculating the maximum loan amount available
- Upon receipt of the loan proceeds, assist in calculating and documenting eligible expenses during the 8-week period
- Assist in calculating the average number of full-time equivalent employees during the applicable measurement and forgiveness period
- Documentation to demonstrate that borrowers have met their obligation to use at least 75% of the PPP loan proceeds for payroll costs
- Program compliance assistance for borrowers using PEO