![]() That doesn’t mean that your loan won’t be reviewed if it is smaller than that, so discuss this with your accountant or tax preparer to determine if this is a concern that your business should have. The SBA does plan to review certain PPP loans, but generally only those that are greater than $2 million. ![]() Should I be concerned about a tax audit or review if I received the PPP loan? They’ll also likely be the person keeping track of your expenditures to help make sure you get your loan forgiven, so you’ll want to know that they have a plan in place for this. Obviously, according to the rules, if you want 100% PPP loan forgiveness, at least 60% of your loan will need to go towards payroll costs, but outside of that your accountant will likely have the best perspective of what your finances look like and which business expenses the other portion of the loan should go towards. If your accountant keeps track of your finances and acts as your bookkeeper too, then this is an important question to ask them. How should we spend/keep track of the PPP loan funds? Have this discussion with your accountant and come to a decision together on whether or not the overarching benefits outweigh having to pay back a loan. The interest rate on any unforgiven portion of a PPP loan is 1%, which is a pretty amazing rate for business loans. Discuss with them if the loan is necessary, and if so, whether it is likely to be forgiven.Įven if your loan isn’t 100% forgiven, consider if this loan is something that can help your business through a financially trying time. This gives you another person to discuss the PPP loan with who is aware of your financial situation and how this loan can help your company. That should be the case with the PPP loan too. ![]() It’s likely that your accountant is very involved in at least advising you on important money decisions regarding your business. Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free ! Should I apply for the PPP loan? Womply has made email marketing truly automatic for busy small business owners and all types of independent contractors. The PPP loan gets a little complicated when you bring into question any obligations that you may have after you’ve received and spent the funds-like what are your tax obligations? Or will the SBA decide to review your loan?Īs you’re applying for the PPP loan, getting ready to apply for loan forgiveness, or even after you’ve already finished going through all of these processes, there are some important conversations that you should have with your accountant and/or tax preparer to help you better understand the loan and any responsibilities you may have when all is said and done.
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