Updated on Thursday, June 25th, 2020
Following the second round of Paycheck Protection Program (PPP) loans, the Small Business Administration and Treasury Department released a workbook and shared advice to help small businesses navigate some of the updates to the program. The guidance specifically helps lenders and borrowers begin the process of having PPP loans converted into grants, which would mean that loans are forgiven.
The most important takeaway is the emphasis on the 75/25 rule, which means that the amount of the loan used for non-payroll expenses cannot exceed 25%. If companies fail to follow this guideline, they will face increased scrutiny and, likely, an audit. Additionally, while all companies that took under $2 million will have been considered to have made the certification in good faith, those taking over $2 million will also likely be audited.
We have updated the resources below to reflect this new information. If you have any further questions or if our association can assist you in any way, please contact Alexis Kochanski at [email protected]
RESOURCES
Paycheck Protection Program Loan Forgiveness Application
Paycheck Protection Program Forgiveness Calculator
SBA Issues Final Interim Rules Providing PPP Guidance
Return to Operations – Recovery Assessment
[WEBINAR] PPP Loan Forgiveness Application Released. What Now?
[WEBINAR] Return the Funds or Seek Forgiveness
Download Transcript of the Above Q&A with Mike McKee of Baker Tilly
About Baker Tilly
Baker Tilly Virchow Krause, LLP (Baker Tilly) is a leading advisory, tax and assurance firm whose specialized professionals guide clients through an ever-changing business world, helping them win now and anticipate tomorrow. Headquartered in Chicago, Baker Tilly, and its affiliated entities, have operations in North America, South America, Europe, Asia and Australia. Baker Tillyis an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 145 territories, with 34,000 professionals. The combined worldwide revenue of independent member firms is $3.6 billion.
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