Small Business Relief – the Paycheck Protection Loan Program

Since late March 2020, the Paycheck Protection Program (PPP) has been a source of hope, relief, study, and sometimes confusion and frustration for business owners across the country.  Millions of potentially forgivable loans totaling billions of dollars have been made over the last several months, and the evolving criteria for and process of forgiveness have been watched closely by borrowers and advisors alike.

GranthamPoole advisors have closely tracked PPP developments, advising many businesses in obtaining loans and measuring potential forgiveness.  Now we are working closely with businesses to navigate the complex forgiveness process, advising our clients on matters of timing, application, documentation, and calculation.  Contact your GranthamPoole advisor or fill out the consultation card below to talk about your own PPP situation.

Examples of questions to be explored include:

When do I apply for forgiveness?

This is deceptively simple-seeming question, and the answer depends on a number of factors, including but not limited to: the status of your current employee base, PPP funds disbursed, application of PPP covered period rules, potential income tax impact, and other factors unique to every business.

How do I apply for forgiveness?

Currently, three different forms exist for PPP forgiveness (Forms 3508, 3508EZ, and 3508S).  Each has specific criteria and threshold requirements for their use, with the “long-form” 3508 used in most cases involving larger loans where full-time equivalent and/or salary/hourly wage reductions have occurred.  Additionally, many banks are using their own tailored web portals for application, those portals designed to gather the proper information for each borrower’s situation.

What documentation do I need for forgiveness?

Documentation required can vary by specific circumstances, form required, and lender.

What is the income tax impact of forgiveness?

While PPP loan forgiveness is not taxable, the tax impact tied to the treatment of expenses covered by those funds has been the subject of much debate which, to date, remains unresolved.  Additionally, the potential timing of the impact under existing law is a topic of some complexity.

Is additional assistance still available?

Federal and state relief options (such as federal Economic Injury Disaster Loans – EIDLs) are continuing to evolve and GranthamPoole advisors are staying abreast of the latest changes on these topics in order to know how best to advise our clients in securing the assistance they need. Request a consultation below to learn more.