A big concern for me with the Paycheck Protection Program loans was how churches would actually receive forgiveness. Churches accepted these loans without knowing what strings would be attached. The good news is that forgiveness is surprisingly simple!
If you applied for the loan, watch this now because it will give you ideas on maximizing your forgiveness. You will end up with less forgiveness if you:
- Reduced your FTE during the crisis without a plan to return back to normal FTE by June 30th.
- Reduced an employee’s salary/wages by more than 75% during the crisis without a plan to return it back to normal by June 30th.
- PPP Forgiveness Application: https://www.sba.gov/document/sba-form–paycheck-protection-program-loan-forgiveness-application
- AICPA Forgiveness Spreadsheet: https://www.aicpa.org/content/dam/aicpa/interestareas/privatecompaniespracticesection/qualityservicesdelivery/ussba/downloadabledocuments/ppp-forgiveness-calculator.xlsx