The Paycheck Protection Program (PPP) was created by the CARES Act and rolled out on April 3 to help keep American workers on the payroll during the COVID-19 pandemic. A vital provision of the PPP provides that loans to eligible small business borrowers can be forgiven if certain criteria are met. In the weeks following initial roll-out, the Small Business Administration released 49 FAQs to explain and rule on various intricacies of the program. On May 15, the SBA released the initial PPP Loan forgiveness application, which left many unanswered questions and confusion.

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Then on June 5, President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA) which turned all previous guidance upside down and made forgiveness much easier for borrowers. Following passage of the PPPFA, the SBA released a revised application for forgiveness, Form 3508. To make forgiveness for some borrowers easier, the SBA also released a new 2-page Form 3508EZ that many companies meeting certain criteria may use.

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While hugely beneficial to millions of small businesses, independent contractors and U.S workers, the continued stream of legislative roll-outs and amendments, daily news articles, and multiple FAQs and application forms, have made the program difficult for small businesses to keep up with. As local banks gear up for the coming onslaught of forgiveness applications, small businesses are still left scratching their heads as to how to maximize this element, the confusing FTE requirements, eligible costs, etc.

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At JHM Certified Public Accountants, we want to help our clients however possible, in understanding and maximizing benefits of the program. In that effort, we are assisting clients daily in PPP areas such as the following.

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JHM PPP Loan Forgiveness Consulting and Application Services

• Review of PPP loan application funding
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• Consultations on how to maximize loan forgiveness
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• Review of salary and wage reduction and FTE workforce reduction
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• Assistance with the SBA’s PPP loan forgiveness application submission
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• Receive and determine adequacy of client data included in input sheets
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• Calculate payroll costs, including healthcare and retirement
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• Determine loan reduction exceptions and safe harbors, to best maximize forgiveness
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• Calculate cash and non-cash compensation to owners
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• Calculate non-payroll costs
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• Provide the proforma of the SBA’s PPP Loan Forgiveness Application
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• Perform a review of the PPP Loan Application for accuracy
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• Serve as the front-line client liaison with various lending institutions
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• Guidance on gathering documentation required to be submitted and retained
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• Other follow-up and correspondence, as needed

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Currently, we expect local banks to begin accepting forgiveness applications in early August. Please let your JHM contact know if you have questions about this complicated program. We will do our best to help navigate the process. You don’t have to tackle this alone! For online inquiries, contact us here and a JHM Team Member will reach out to you.