SBA PPP Loan Forgiveness Application 05.15.20
I have reviewed the PPP Loan Forgiveness Application 05.15.20 (released on Friday evening at 7:15 PM) and have highlighted on the 11 Pages, the instructions pertaining to each line along with the cross reference for each of the Line #’s to make it easier for you to track where the #’s are coming from and what documentation will be needed in order to gain PPP Loan Forgiveness
Here are some highlights for you
- Alternative Payroll Period – the payroll period can be extended beyond the covered period if you are paying on a frequency, such as bi-weekly payroll and the payroll period extends beyond the “8-week” covered period
- Bi weekly Payroll – your can stay on bi weekly payroll even if it is beyond the covered period. We initially thought you would have to switch to weekly…this not the case
- 56 days are the covered period, not 8 weeks so if your start date is April 26th, the end date is June 20th and not the 8 week period of June 21st
- Health insurance – page 5 – it appears the owners health insurance can be included as a payroll costs – we will need further clarification
- Retirement Plan Contributions – page 5 – it appears the owners retirement plan contribution can be included as a payroll costs – we will need further clarification. We will also need to confirm the payment of the 2019 Liability that remains unpaid at this time.
- Employee Rehire Letter & employee rejection confirmation(s) – we need to keep these on file for a 6 year period (pg. 8)
- FTE – is defined as 40 hours a week – anything less than 40 hours = .5 FTE (pg. 7 and pg. 9) we will need to discuss this for most of our clients work a 32 hour week as opposed to a 40 hour week. We will need further clarification
- Payroll substantiation – need copies of payroll reports from ADP, Paychex, etc. (pg. 10) in order to support the Payroll Costs as part of the PPP Loan Forgiveness.
- Business Mortgage Interest Payments – Information needed to gain PPP Loan Forgiveness – Lender Amortization schedule and canceled checks or lender account statements (pg. 10)
- Business Rent – Information needed to gain PPP Loan Forgiveness – copies of Lease Agreement or canceled checks or Lessor Account Statements (pg. 10)
- Utility Payments – Information needed to gain PPP Loan Forgiveness – copies of invoices from February 2020 and invoices during the covered period cancelled checks or account statements verifying the payments (pg. 10)
- Statute of Limitations – 6 years (pg. 10)
Please take the time to review the attached as well. You may need to obtain your CPA Certification in order to complete the PPP Loan Forgiveness Application!! :>) ….. I am sure these forms will change again before we see the final PPP Loan Forgiveness forms from the SBA. I will let you know, if this is the case.
As a reminder, please keep a file for all of your supporting documentation, so we can help you gain maximum PPP loan forgiveness.
Rehire Letter (employee rejection Letter)
The employee “rehire letter” is a must during these times. Why? Because based on current guidance, you will be “forgiven” if you have 6 employees as of June 30, 2020 as opposed to the 8 employees you had as of February 15, 2020, as long as you have 2 employee rejection letters to substantiate the decline in employees from 8 to 6. These letters must be retained for 6-years.
Can you and / or your employees stay on Unemployment?
Once you announce the reopening of your office, you and your employees must come off of unemployment. It is your responsibility to notify your State’s Unemployment division, that you have reopened your dental practice.
Video introduction on your new PPE Procedures within your office
I feel this is a great idea announcing to your patients what your new PPE procedures will be as we move forward, “Post Covid”
The following two (2) Videos are from the ADCPA as well as a local orthodontist. I do not represent either of these clients. I wanted to share, in case you wanted to produce a Video for your practice as well. I have received permission to share these videos.
If you would like to share your practices Video, I would be happy to share with our Schiff Dental Clients. We are just an e-mail away!
Please enjoy your Sunday!