Did your business receive one of the 36,604 Paycheck Protection Program (PPP) loans issued thus far by the Small Business Administration (SBA) in Pennsylvania? If so, you’re likely facing a whole new slate of uncertainties and a ticking clock to maximize loan forgiveness. If PPP funds are spent as intended on payroll, mortgage interest, rent, and utilities in the eight weeks after receipt, those expenditures are potentially eligible for complete, tax-free forgiveness.
RKL business advisors have been supporting organizations throughout the PPP loan process, helping with documentation prep for the application and now advising loan recipients on what actions to take regarding owner and employee compensation, workforce headcount, and cost evaluation throughout this critical eight-week period.
While there are many ambiguities in the SBA guidance at the time of this writing, the RKL team developed a Loan Forgiveness & Cash Flow Forecast to help organizations navigate critical decision-making in today’s uncertain economic and business environment. This isn’t just another flat calculator that spits out basic figures; instead, the RKL forecast starts with consultation and takes into account each organization’s nuances and other factors like industry trends and marketplace activity. From there, RKL advisors use various data points based on specific financial and workforce plans to produce customized insights and easy-to-understand visual projections that can be adjusted for different scenarios.
Despite the importance of maximizing loan forgiveness, it’s not just the next eight weeks that organizations should be considering. Long-term planning and sustainability are just as critical as the pandemic response continues to evolve and phased economic reopening starts to take effect. That’s why RKL’s forecast is valuable not only to maximize PPP loan forgiveness, but also to start developing longer-term strategies for sustainability.
Interested in resources and support to make it through today’s challenges and start building a strategy for tomorrow? Get more details on the Loan Forgiveness & Cash Flow Forecast approach and fill out the request form to get started. For the latest financial, operational and workforce insights from RKL, visit the Coronavirus Resource Center.