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.
Useful Links
- 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
One thing I have actually noticed is that often there are plenty of misconceptions regarding the banking companies intentions while talking about foreclosure. One fantasy in particular is the fact the bank needs to have your house. The lender wants your hard earned money, not your house. They want the funds they lent you along with interest. Steering clear of the bank is only going to draw a new foreclosed final result. Thanks for your post.