PPP Loan Services
Businesses with fewer than 500 employees, including sole proprietors and those with self-employment income, are eligible for a forgivable loan that is fully guaranteed by the federal government through December 31, 2020.
Help with PPP Loans
Companies that have managed to secure financing through the Paycheck Protection Program (PPP) are fortunate—but also saddled with a lot of red tape. Business owners and managers should be careful that they adhere strictly to the terms of the program to qualify for loan forgiveness.
Calculate the PPP loan amount
Unfortunately, the Small Business Administration loan program, which was rapidly flooded with applications, quickly maxed out the money available for emergency loans. Congress is expected to authorize more funds for the program soon.
Forgiveness amount
Expense tracking
A Few Recommendations:
PPP Loans have stringent rules as to what the funds can be spent on, to help you stay in compliance with the laws. We recommend the following:
SEPARATE BANK ACCOUNT
We advise clients to set-up a separate (new) bank account for the PPP funds, so they can easily be traced to use for appropriate purposes. Ideally, you would pay the qualifying items out of this account. However, if this is not possible, we recommend continuing to pay those expenses from other accounts and keep a detailed record of what is reimbursed to other accounts for a precise tracing of these funds.
WHAT CAN THE FUNDS BE USED FOR
Generally, the funds can be used in the eight weeks following the loan, for payroll costs, rent, utilities, and interest (not principal) on loans. More specifically, these costs include:
Payroll
Wages, tips, and other similar compensation, employer portion of SUTA, employer portion of health insurance, dental insurance, and health savings account contributions. Payroll does not include the employer portion of FICA, which is Social Security and Medicare.
Rent
Rent payments on leases dated before February 15, 2020.
Mortgage Interest
Payments of interest on mortgage obligations incurred before February 15, 2020.
Utility Payments
Payments of utilities based on contracts that were in effect before February 15, 2020.
Do You Have Questions?
COVID-19 Resources
Pandemic Affecting the Professional Services Industry
The professional services industry is feeling the impact of the COVID-19 crisis in a variety of ways. Firms are adjusting to remote working and new client engagement models, all while navigating demands in the face of growing uncertainty.
Applying for the Expanded Employee Retention Credit
The latest stimulus bill that passed in December 2020 provides for an expansion of the employee retention credit.
New Round of Grants for Olmstead County Businesses
Rochester Area Economic Development, Inc. (RAEDI) announced they will oversee the Olmsted County State of Minnesota Small Business Relief Grant Program.