Profit protection program

What compliance issues should I be concerned with? Upon completing the Loan Forgiveness Application or lender equivalent, the borrower must make certain representations that the loan proceeds were utilized for qualified payroll and other covered costs of the loan program.

While all organizations should maintain accurate and adequate records to support the payments made from loan proceeds, the SBA and Treasury established a safe harbor as noted in the PPP FAQ.

What financial reporting requirements should we be considering with these funds? A: More guidance is needed, but as previously mentioned, we do know that for any portion of the loan to be forgiven, the borrower will be required to submit the Loan Forgiveness Application or lender equivalent and documentation to verify costs as outlined in the Loan Forgiveness Application.

What impact will forgiveness of the PPP loan have on our Form and related state return? However, at this time, we are still waiting on additional guidance and clarification as to the treatment for exempt organizations reporting on Form and their related state returns.

When our organization applied for the PPP loan, certain information was not available or clear. Since then, the Department of Treasury has issued guidance, and our loan application may not comply with the new guidance. What impact does the new guidance have on our loan? A: Per the PPP FAQ, if a borrower relied on interim guidance that was relevant at the time that the loan application was submitted, then no further action is necessary.

The interest rate on PPP loans is assumed to be below market rate. Do we need to impute interest? A: No, in accordance with ASC e , a transaction between the borrower and a government agency does not require the borrower to impute interest. For advice regarding your specific situation, contact your accounting professional or our team.

Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice.

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The Paycheck Protection Program is providing small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead. This program creates a new type of loan that will be disbursed by the hundreds of Small Business Administration SBA partner banks across the country. This program offers nearly all nonprofits a loan for 2. As long as your organization spends the loaned money on payroll, mortgage payments, rent and utilities, and you maintain your payroll, the entire loan amount can be forgiven, converting it into a grant.

No personal guarantee or collateral is required. There are caveats to keep in mind, but, the bottom line is still that this is a way to access an enormous amount of funding for your organization.

The upshot? Instead of transcribing what has already been written, we have compiled a few links that provide more in-depth information. As a result, it is expected that applications will be met on a first-come, first-served basis.