I’m hearing from many that they are now receiving bills for PPP Loan Repayments on their first draw loans. Some are even asking what they should do. The answer is simple.
Put in your loan forgiveness paperwork.
Many are acting as if this is something that doesn’t have to be repaid. Yes, it’s true that you don’t have to repay it, but that’s only once it’s been forgiven.
Let’s explain the timing.
If you received your loan April 15th of 2020, you were given a 24 week covered period for the loan and ten months after that to put in for forgiveness. That would give us roughly until the end of August to submit Form 3508 and the accompanying documentation for forgiveness.
If you haven’t submitted your paperwork and are now being asked to repay the loan, fear not. There’s a solution.
The CARES Act specifically states that the bank cannot ask you for monthly payments while they are working on your forgiveness application. As such, the only thing you need to do to stop the payments is to submit your forgiveness application.
If you need help getting your loans forgiven, please contact us today.
Let me leave you with this.
Is anyone surprised that we haven’t been shut down again? Case numbers continue to decline, and more people are getting vaccinated. It might be true that we are out of the woods, but are we really?
I don’t think it’s quite time to open that bottle of Champagne you’ve been saving.
We’ve had an unseasonably warm October so far, but fall is coming. In case you forgot, that’s when everyone gets the flu. If the numbers spike again, there’s only one thing the politicians would be able to do.
They seem rather resolute to keep things open this time, but they may be put into a position where they don’t have a choice. Now is not the time to relax your leadership on this most critical issue.
If you have any employees who aren’t vaccinated, talk to them. Provide the leadership they need to make an informed decision.
I hate to say it, but I bribed mine. I gave anyone who could hand me a completed, legal by the way, vaccination card a $1,000 bonus. I figured that $1,000 was way less than it would cost if someone came down with it and gave it to everyone else. Just think of the lost revenues from everyone being quarantined for two weeks.
Guess what. It worked. This must still be Chicago.
Talk to your people. Reason with them. Beg them. Bribe them if you have to. Do whatever it takes. We aren’t out of the woods yet.
In other words…Lead.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.