Paycheck Protection Program Loans Forgiveness Webinar – Part 2

As discussed below, on May 15th the Small Business Association released its Payroll Protection Program Forgiveness Application which provides some additional clarification.PPP-loan-forgiveness-guidelines-payroll.jpg

As a follow-up to our previous Paycheck Protection Program Forgiveness webinar, we will share an overview of the new guidance including:

  • Time Period for Forgiveness
  • Alternative Payroll Covered Periods
  • Eligible Costs
  • Payroll Reduction Exemption
  • FTE Calculation
  • The 75/25 Rule

Date: Thursday, May 28, 2020

Time: 12:00 ET/11:00 CT

REGISTER HERE

SBA Releases PPP Loan Forgiveness Application and Instructions

On Friday, May 15th, the SBA released the application form and instructions that borrowers should use to apply for forgiveness on their PPP funds they received. Highlights of the form include:

  • When the 8 week period begins to count expenses disbursed from the funds to credit towards forgiveness.
  • What payroll expenses count towards the eligible expenses.
  • How to calculate the full time equivalent (FTE) of employees.
  • Inputs for Business mortgage utility payments.
  • Inputs for Business rents or lease payments.
  • Inputs for Business utility payments.

The form also includes instructions for what documentation will need to be submitted with the application form, in order to support the expenses shown.

It is expected that there will be additional clarification from the SBA as this process continues. HSC will update our clients and friends as this information becomes available. In the meantime, please be sure to contact us with any questions or visit our COVID-19 Resource Center for additional resources.

For more information please contact Scott Touro, MBA at stouro@hsccpa.com.

Have You Developed Your “Re-Entry” Strategy?

As the conversation in the United States turns towards re-starting our economy, businesses want to know how they can responsibly reopen their business and protect the health and safety of their employees. At a minimum, businesses need to consider federal and state health guidelines and requirements to limit the spread of COVID-19, including but not limited to:

  1. How do reintroduce employees back into the workforce in phases?
  2. What new employee leave policies/procedures do we need to have in place?
  3. How will we monitor employee health proactively?
  4. What new cleaning/sanitizing practices do we need to adopt?
  5. Exactly what will social distancing look like?
  6. What PPE do we need to protect employees from exposure to COVID-19?
  7. Do I need a written plan?

The above questions are just a start.   As the re-entry begins, you will want to give employees confidence they are protected, and get businesses back to being productive and profitable.

State guidance for Indiana and Kentucky can be found at kycovid19.ky.gov and https://www.coronavirus.in.gov/.

SBA Allows Increased PPP Loans to Partnerships, Extends Safe Harbor to May 18, 2020

The U.S. Small Business Administration (SBA) issued a new interim final rule 5/13/2020 which allows lenders to increase existing Paycheck Protection Program (PPP) loans to partnerships and seasonal employers. An excerpt from the applicable section is provided below and the full interim final rule may be accessed here:

The ability to increase loans applies to partnerships who submitted their loans prior to April 14th because the guidance issued that date stated that the self-employment income of general active partners was now to be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by, or on behalf of, the partnership. This means that applications from partnerships made prior to April 14th were likely granted loans in amounts less than they would qualify for under the new guidance. Similarly, an interim final rule dated April 28th established an alternative criterion for calculating the maximum loan amount for PPP loans issued to seasonal employers.

The interim final rule issued 5/13/2020 allows all PPP lenders to increase existing PPP loans to partnerships or seasonal employers to include appropriate amounts to cover partner compensation in accordance with the April 14th interim final rule as outlined below.

Question: If a partnership received a PPP loan that did not include any compensation for its partners, can the loan amount be increased to include partner compensation?

Answer: Yes. If a partnership received a PPP loan that only included amounts necessary for payroll costs of the partnership’s employees and other eligible operating expenses, but did not include any amount for partner compensation, the lender may electronically submit a request through SBA’s E-Tran Servicing site to increase the PPP loan amount to include appropriate partner compensation, even if the loan has been fully disbursed, provided that the lender’s first SBA Form 1502 report to SBA on the PPP loan has not been submitted.

After the initial SBA Form 1502 report on the PPP loan has been submitted to SBA, or after the date the first SBA Form 1502 was required to be submitted to SBA, the loan cannot be increased. In no event can the increased loan amount exceed the maximum loan amount allowed under the PPP Program, which is $10 million for an individual borrower or $20 million for a corporate group. Additionally, the borrower must provide the lender with required documentation to support the calculation of the increase.

The interim final rule posted on April 14, 2020, describes how partnerships, rather than individual partners are eligible for a PPP loan. The interim final rule further explained that the self-employment income of general active partners could be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership. Guidance describing how to calculate partnership PPP loan amounts and defining the self-employment income of partners was posted on April 24, 2020.

Please contact Scott Touro, MBA at stouro@hsccpa.com with any questions.

SBA Releases New Guidance on the Topic of FAQ31 with FAQ46 – UPDATED

UPDATE to Memo regarding FAQ46

The Safe Harbor date that expired 5/14/2020 has been extended to Monday 5/18/2020
 
47. Question: The SBA interim final rule posted on May 8, 2020 provided that any borrower
who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed
by SBA to have made the required certification concerning the necessity of the loan
request in good faith. Is it possible for a borrower to obtain an extension of the May 14,
2020 repayment date?
 
Answer: Yes, SBA is extending the repayment date for this Safe Harbor to May 18,
2020, to give borrowers an opportunity to review and consider FAQ46. Borrowers do
not need to apply for this extension. This extension will be promptly implemented
through a revision to the SBA’s interim final rule providing the Safe Harbor.

 

Original post from May 13, 2020

The SBA released new guidance today on the topic of FAQ31 with FAQ46 (captured below in full). The guidance comes just one day before the 5/14/2020 deadline for PPP borrowers to return loan proceeds in full if they are concerned over the FAQ31 attestation language expansion.

This guidance has been anxiously awaited by all borrowers, but particularly by those with loans in excess of $2 million which will be subject to mandatory audits previously announced by the Treasury Secretary. In addition, many borrowers are well underway with expending their loan proceeds on approved uses including staffing decisions based on the receipt of the PPP loan.

Loan Amounts under $2 million

This new guidance has some very positive outcomes for most borrowers. Primarily, if the loan amount is less than $2 million (when taking into account affiliation rules of related companies that may have received separate loans), the borrower(s) is/are automatically granted Safe Harbor in regards to the expanded attestation question in FAQ31. In other words, borrowers no longer need take into account access to other sources of liquidity or consider the detrimental impacts to the business of using this liquidity. This will provide a sigh of relief for most small businesses that received these loans.

Loan Amounts over $2 million

It has been noted that over 25,000 borrowers nationwide received loans over the $2 million threshold. These borrowers may still seek Safe Harbor if they return the loan by tomorrow (5/14/2020), but for most that elect to keep the loan, they will still be subject to a mandatory audit. The SBA noted that if borrowers choose not to seek Safe Harbor they may still have a case for keeping the loan proceeds.

It is unclear if this SBA audit is to occur within the 60 days after the borrower provides the necessary support to request loan forgiveness (as is provided for within the Cares Act) or some period much longer. Assuming it is within 60 days, the first test will be to determine if the borrower is eligible for any forgiveness at all, under the expanded attestation in FAQ31 and now FAQ46. If the SBA deems that the borrower fails this test, then this new guidance below indicates that the SBA will not “pursue administrative enforcement or referrals to other agencies” so long as the loan is paid back upon receiving notice from the SBA of this determination. In addition, the Bank is still entitled to its SBA guarantee of the loan.

If it is determined that the borrower is not eligible for forgiveness, this determination would occur after the covered period is over. For borrowers who took large loans to maintain or rebuild payrolls and who may have already spent all or most of the loan proceeds on approved expenses, the question is: how much time is there to pay the loan back? It is unclear at this time if it is due immediately upon SBA request or face “administrative enforcement” or whether the borrower would have the full 2 years to pay back the loan.

Even with this additional guidance, questions remain: Is the SBA trying to force borrowers with access to cash and available lines of credit larger than the PPP loans to use those funds to pay back the loans? Will the decision be a simple math equation in the audit or will the company-specific circumstances be the determining factor in deciding forgiveness? It is very unclear how the auditors will make this determination, but documentation of how the borrower meets the expanded attestation is as important as ever for these larger borrowers. Equally important may be the need to maintain access to liquidity in an amount of the PPP loan that was already spent. For those borrowers that do not have enough liquidity to pay back the PPP loans that they spent as intended, will they automatically pass this attestation test and be offered forgiveness? That remains to be seen.

Here is the FAQ46 from the guidance today, 5/13/2020

46. Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

Answer: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: Any borrower that, together with its affiliates (20), received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.

SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.

Importantly, borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form.

If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. SBA’s determination concerning the certification regarding the necessity of the loan request will not affect SBA’s loan guarantee.

(20) For purposes of this safe harbor, a borrower must include its affiliates to the extent required under the interim final rule on affiliates, 85 FR 20817 (April 15, 2020).

(21) Question 46 published May 13, 2020.

Please contact Scott Touro, MBA at stouro@hsccpa.com with any questions.

Single Audit Requirements: SBA Loan Programs

In response to the COVID-19 pandemic, Small Business Administration (SBA) Paycheck Protection Program (PPP) loans, administered under the 7(a) guaranty loan program, are being provided through local financial institutions. While these loans have been made primarily to for-profit entities, some not-for-profit entities (NFPs) also have received PPP loans, and such entities have been asking whether PPP loans will be subject to the Uniform Guidance Single Audit requirements. The Government Audit Quality Center (GAQC) of the AICPA recently stated that they contacted SBA staff, who indicated that PPP loans made to NFPs will not be subject to the Single Audit requirements.

On the other hand, SBA staff indicated to the GAQC that loans made to NFPs under the Economic Injury Disaster Loan Assistance program are considered a direct loan program disbursed from SBA to loan recipients. Therefore, such loans are considered federal financial assistance and are subject to the Uniform Guidance Single Audit requirements

Please contact Greg Elpers, CPA at gelpers@hsccpa.com for more information.

COVID-19 Grants Available for Small Businesses

Communities in Southwest Indiana were recently awarded competitive grant funding through the Indiana Office of Community and Rural Affairs. The funding will help local small businesses, with 25 employees or less, continue to operate during the COVID-19 pandemic. This grant funding offers grants to businesses in high risk categories including: food and beverage, personal care, professional services, and retail sectors.

GRANT APPLICATIONS WILL OPEN ON FRIDAY, MAY 15TH AT 12:00 P.M. CDT. AND CLOSE ON FRIDAY, MAY 22TH AT 4:00 P.M. CDT.
ONLY ONLINE APPLICATIONS WILL BE ACCEPTED.

   Click here for Southwest Indiana Grants

On May 8, 2020, officials from the City of Jeffersonville, in partnership with One Southern Indiana (1si), the chamber of commerce and economic development organization for Clark and Floyd counties, Ind., established a forgivable loan fund of up to $250,000. Called “Jeffersonville Sustains,” the program will provide access to operating capital for specific small businesses within the City of Jeffersonville that have been negatively impacted by the 2020 COVID-19 pandemic. Qualified business must be locally owned and operated restaurants, including bars, entertainment venues, boutiques, salons and retail shops not part of a national chain or franchise.

The request process opened
May 12th, and applications will be accepted through MONDAY, MAY 18th at 5 P.M..

Click here for Jeffersonville Sustains

SBA Releases New Guidance on the Topic of FAQ31 with FAQ46

The SBA released new guidance today on the topic of FAQ31 with FAQ46 (captured below in full). The guidance comes just one day before the 5/14/2020 deadline for PPP borrowers to return loan proceeds in full if they are concerned over the FAQ31 attestation language expansion.

This guidance has been anxiously awaited by all borrowers, but particularly by those with loans in excess of $2 million which will be subject to mandatory audits previously announced by the Treasury Secretary. In addition, many borrowers are well underway with expending their loan proceeds on approved uses including staffing decisions based on the receipt of the PPP loan.

Loan Amounts under $2 million
This new guidance has some very positive outcomes for most borrowers. Primarily, if the loan amount is less than $2 million (when taking into account affiliation rules of related companies that may have received separate loans), the borrower(s) is/are automatically granted Safe Harbor in regards to the expanded attestation question in FAQ31. In other words, borrowers no longer need take into account access to other sources of liquidity or consider the detrimental impacts to the business of using this liquidity. This will provide a sigh of relief for most small businesses that received these loans.

Loan Amounts over $2 million
It has been noted that over 25,000 borrowers nationwide received loans over the $2 million threshold. These borrowers may still seek Safe Harbor if they return the loan by tomorrow (5/14/2020), but for most that elect to keep the loan, they will still be subject to a mandatory audit. The SBA noted that if borrowers choose not to seek Safe Harbor they may still have a case for keeping the loan proceeds.

It is unclear if this SBA audit is to occur within the 60 days after the borrower provides the necessary support to request loan forgiveness (as is provided for within the Cares Act) or some period much longer. Assuming it is within 60 days, the first test will be to determine if the borrower is eligible for any forgiveness at all, under the expanded attestation in FAQ31 and now FAQ46. If the SBA deems that the borrower fails this test, then this new guidance below indicates that the SBA will not “pursue administrative enforcement or referrals to other agencies” so long as the loan is paid back upon receiving notice from the SBA of this determination. In addition, the Bank is still entitled to its SBA guarantee of the loan.

If it is determined that the borrower is not eligible for forgiveness, this determination would occur after the covered period is over. For borrowers who took large loans to maintain or rebuild payrolls and who may have already spent all or most of the loan proceeds on approved expenses, the question is: how much time is there to pay the loan back? It is unclear at this time if it is due immediately upon SBA request or face “administrative enforcement” or whether the borrower would have the full 2 years to pay back the loan.

Even with this additional guidance, questions remain: Is the SBA trying to force borrowers with access to cash and available lines of credit larger than the PPP loans to use those funds to pay back the loans? Will the decision be a simple math equation in the audit or will the company-specific circumstances be the determining factor in deciding forgiveness? It is very unclear how the auditors will make this determination, but documentation of how the borrower meets the expanded attestation is as important as ever for these larger borrowers. Equally important may be the need to maintain access to liquidity in an amount of the PPP loan that was already spent. For those borrowers that do not have enough liquidity to pay back the PPP loans that they spent as intended, will they automatically pass this attestation test and be offered forgiveness? That remains to be seen.

Here is the FAQ46 from the guidance today, 5/13/2020

46. Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

Answer: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: Any borrower that, together with its affiliates (20), received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.

SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.

Importantly, borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form.

If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. SBA’s determination concerning the certification regarding the necessity of the loan request will not affect SBA’s loan guarantee.

(20) For purposes of this safe harbor, a borrower must include its affiliates to the extent required under the interim final rule on affiliates, 85 FR 20817 (April 15, 2020).
(21) Question 46 published May 13, 2020.

Please contact Scott Touro, MBA at stouro@hsccpa.com with any questions.

“Nontaxable” PPP Loan Forgiveness Will Essentially Be Taxable

The Internal Revenue Service has clarified in an IRS notice today, that no deductions will be allowed for those expenses resulting in loan forgiveness granted through the Paycheck Protection Program.  While we are disappointed in this outcome, it did not come as a surprise (as predicted in our 4/17/2020 PPP Forgiveness Webinar). In most cases this should not change a business’s decision on whether to accept the PPP funds or not.  For details, please see the full IRS notice.

Please contact Scott Touro, MBA at stouro@hsccpa.com for more information.

PPP Loans – Government Announces Planned Audits of Certain Borrowers Carefully Review and Document Your Good Faith Certification

It has been widely publicized that many small businesses did not receive funding in PPP “Round 1”. Coinciding with the timing of approval by Congress of “Round 2” on Thursday 4/23/2020, the SBA issued FAQ 31 to its FAQ document. This is on the heels of well-publicized reports of public companies receiving, and eventually returning, large SBA loans under the PPP program.

In addition, on April 28, Treasury Secretary Mnuchin told CNBC that the government will perform a full audit on any company taking out more than $2 million from the PPP loan program. “We will make sure that what was the intent for taxpayers is fulfilled here,” Mnuchin said in a CNBC interview. “This was a program designed for small businesses. It was not a program that was designed for public companies that had liquidity.'”

FAQ 31 (see below for full excerpt) introduces additional guidance regarding qualification: “. . . Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant. Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. . .”

What does the new guidance mean?

It is important to note the following key elements:

  1. Borrowers were already required to attest on the application that “current economic uncertainty makes the loan request necessary to support ongoing operations of the applicant”.
  2. The CARES Act had specifically and intentionally excluded a requirement that borrowers establish they did not have access to credit elsewhere (which is typically required for SBA 7(a) Loans), but was silent in terms of a liquidity standard. This apparently has been revised now, at least in the eyes of the SBA and the US Treasury.
  3. With this new guidance, “Borrowers must make this [original] certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.”
  4. Safe Harbor – To emphasize its point, the SBA is offering a Safe Harbor for applicants that may no longer think they qualify. “Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.”

There are three key points here that each borrower needs to examine:

1. “Current Business Activity” 

The example is silent in terms of what “current business activity” should be taken into account. Each business might be impacted in one or more different ways, from reduced sales, diminishing backlog and sales outlooks, contracts put on hold, stretched receivables, increased credit risk, disrupted supply chains, pressure on staffing and wages due to increased state and federal unemployment benefits, closures, or uncertainty on when they can open for business again, just to name a few examples.

In addition, what if an employee becomes infected in the workplace? What additional costs or lost revenues might be incurred?

2. “Other sources of liquidity” 

The example in FAQ 31 cites that public companies with substantial market value and access to capital markets would be unlikely to be able to make the certification in good faith.

Public companies with access to capital markets, significant cash balances, or available lines of credit may be perceived to have other sufficient sources of liquidity (whether they would feel compelled to tap that liquidity to maintain employment and incur losses is another question. . . ).

The FAQ provides no examples for small privately-held businesses. Whether that is an intentional omission is unknown; however, with the latest announcement from the Treasury, we now know that any loan greater than $2 million will be audited.

It seems reasonable to question whether existing liquidity is sufficient to weather an unprecedented public-health-driven economic crisis. It might seem “possible” that current liquidity is sufficient under one scenario, but what if the business conditions linger for months, quarters, or years? How available will emergency capital be from traditional lending sources at that time? If it is available, might it be under acceptable and reasonable terms?

3. “Not significantly detrimental”

We already know that anyone that applied for the PPP loans attested that current economic uncertainty makes the loan request necessary. When uncertainty increases, the need for liquidity and cash flow shifts from being very important to critically vital.

Most small, privately held businesses have limited access to liquidity beyond the owners’ personal assets and/or traditional financing which is underwritten based on expected cash flows and collateral and allowed borrowings are often governed by a defined borrowing base. Many or most of traditional financing agreements also include certain financial covenants which, if not maintained, can result in technical default (if not waived by the bank).  Traditional financing, with these types of restrictions and criteria, may limit access to liquidity, sometimes when it is needed most.

This is where the rubber meets the road. Many business owners might desire to help their employees and keep them off the unemployment rolls, but, will a business with reduced sales continue to keep employees on payroll, incur losses, and go further into debt by tapping this liquidity? What if declining sales or aging receivables causes a reduction to your borrowing base and access to liquidity under your line of credit? What if this causes the loan to go into technical default? Is that significantly detrimental?

For many small businesses, a line of credit is their last lifeline for business continuity. When weighing whether to accept PPP Loan funds for liquidity to keep the bulk of the workforce employed, would the alternative of potentially exhausting this line of credit lifeline be considered significantly detrimental?

So what does this mean to most privately-owned small and medium sized businesses and what should you do if you applied for and received an SBA loan? Clearly the fact that large public companies received these loans and elected to return the funds sets a precedent to take note of. That said there is a big difference between the extremes of a public company that can issue stock and a mom and pop small business in terms of “sufficient liquidity” and capitalization. The latter that are in dire need of these funds would hopefully easily pass this requirement just as easily as a Fortune 500 firm might fail.

We hope that for the companies that fall somewhere in between, that common business sense might prevail. Given the revised guidance issued by the SBA and the pending May 7, 2020 deadline for returning loan proceeds, we strongly encourage you, your organization’s management, and board of directors to carefully and immediately review your company’s financial situation and reconsider the relief you may have already received with a PPP loan. Specifically, consider whether your circumstances fall within the spirit and intent of this economic relief program.

It is unfortunate that the new guidance is not more clear and objective as it may well leave well-meaning business owners with real-time questions about whether they should take the PPP Loans and ensure the employment of their employees.

What if you no longer feel you qualify?

If you have been approved for a PPP loan and repay the loan in full by 5/7/2020 (i.e. no loan forgiveness) then your original attestation will be accepted in good faith and the new requirements will not be enforced and the borrower will be offered safe harbor. If not, it apparently is assumed that you have accepted this revised version of the attestation.

What if you believe you still qualify?

If you do receive and keep PPP funding, it is critical that you maintain complete and accurate documentation to support your eligibility for such funding, the specific use of these funds, as well as your qualifications for forgiveness under the terms of the program. Speak to your advisors and legal counsel and keep good records. This documentation will be crucial were your business to be audited and/or investigated. This defensive documentation will greatly minimize your potential exposure related to your participation in this loan program.

Many of the factors influencing whether you qualify or should apply for these loans are organization specific. We encourage you to consult with legal counsel if you have questions regarding your organization’s eligibility to receive funds.

Please contact Scott Touro, MBA at stouro@hsccpa.com for more information.