Roseville Accountant (CPA) for PPP Loan Forgiveness Application
Cook CPA Group
If the coronavirus pandemic disparately impacted your business, the Paycheck Protection Program (PPP) could substantially assist your business in its time of need. If the proper requirements are met, it may even be possible for a business owner to be forgiven from having to pay back the loan. If your company needs assistance filing for Paycheck Protection Program loan forgiveness, contact an experienced Roseville accountant for the PPP loan forgiveness program.
At Cook CPA Group, we see the burdens facing many small businesses throughout Roseville and the United States, and we are here to extend our services to you. The PPP loan forgiveness program is an excellent opportunity for companies that need financial assistance, and we would like to help you start your application. To schedule a free consultation to discuss your PPP loan forgiveness application, contact Cook CPA Group at (916) 432-2218. Feel free also to contact us online.
How PPP Loans Work for Businesses in Roseville
There is no denying that the coronavirus pandemic has had a terrible effect on many small businesses in California and across the United States. To ease the financial burdens faced by many small business owners, the U.S. government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES).
The Paycheck Protection Program falls under the CARES Act to help small businesses avoid extensive losses or the possible dissolution of small businesses due to loss of revenue caused by the coronavirus. Specifically, the PPP loan is given to help small business owners to cover the costs of operating the business, payroll for employees, and interest that is accruing on debt.
There are a few requirements that must be met before a small business can be approved for a PPP loan:
- The business must have 500 employees or fewer
- The company must satisfy the definition of a small business under the “Small Business Act”
- The small business cannot have a tangible net worth of more than $15 million
- The average net income of the business after federal income taxes cannot exceed $5 million for the prior two fiscal years
It is important to note that there are multiple types of business entities that are eligible for a PPP loan. For example, a self-employed person operating as a sole proprietor can receive the PPP loan. Additionally, entities operated as partnerships, corporations, S corporations, and even non-profit organizations can apply for the PPP program.
Note, however, that a small business that applies for the PPP loan must have been in operation before February 15, 2020. Attempting to claim a PPP loan for a newly formed company can lead to a number of legal issues for an applicant. Additionally, PPP funds that are used for improper purposes could lead to civil and legal liability.
To learn more about how a PPP loan can be forgiven, you should continue reading and do not hesitate to contact our skilled Roseville accountants for the PPP loan forgiveness program.
How to Apply for a PPP Loan Forgiveness in Roseville, CA
The PPP loan is intended to help small business owners combat the many effects of the COVID-19 pandemic. However, just like any other loan, the PPP loan must be paid back. Originally, the PPP loan had a maximum loan term of two years prior to amendments made by Congress via the PPP Flexibility Act. Now, the PPP loan has a maximum five-year loan term for loans issued on or after June 5, 2020. Payments can also be deferred for six months in anticipation of a decision on eligibility for loan forgiveness.
To further ease the burden small businesses face during the coronavirus pandemic; legislators have provided a way for taxpayers to apply for PPP loan forgiveness. This means that a company would not have to pay the government back for a PPP loan that may have saved their business.
The application for PPP loan forgiveness is available on the website for the U.S. Department of Treasury. However, while some questions are easily answered, others may appear more difficult to interpret. Our CPAs can help guide you through the process of filing your loan forgiveness application.
To increase your chances of having your PPP loan wholly forgiven, you should ensure that you stick to the following guidelines. First, you should only use the PPP loan for certain expenses. For example, using a PPP loan to pay employees, rent, utilities, and mortgage interest, will increase the possibility of having your loan forgiven.
Next, you should ensure that you do not drastically reduce the number of employees and make sure not to reduce employee wages by substantial amounts. For example, decreasing employee wages by 30% may reduce your chances of having your loan forgiven.
Be sure to keep accurate records of how your loan funds were used. Additionally, it would help to develop continuously communicate with the lender regarding any burdens involving the loan.
Don’t wait to apply for your PPP loan forgiveness; the team at Cook CPA Group is ready to assist you today.
Contact Our Skilled Roseville Accountants for PPP Loan Forgiveness Program to Discuss Your Application
If you need assistance to file your PPP loan forgiveness application for your company, you should contact an experienced Roseville CPA for the PPP loan forgiveness program. The Cook CPA Group has worked with a variety of businesses in several industries, and we possess the experience and knowledge to help you file your PPP loan forgiveness application. Let our skilled CPAs offer you the accounting services you deserve, contact Cook CPA Group at (916) 432-2218 to schedule a free consultation.