Levine and Associates have followed through with the latest updates and guidelines for the second reiteration of PPP launched last January 11. Working closely with clients, we’ve compiled three essential tips for PPP borrowers and CPAs need to remember during the application and forgiveness process:
Be Critical of Data
The first step to prepare yourself when applying for a PPP loan or forgiveness is to start collecting the data and the documentation necessary for the program. Make sure all the documents that you need is ready to go and accurate. We cannot stress this enough. The IRS has announced that they will be doubling down their audit rate this year.
The PPP program is not new, but many new rules have been implemented. Make sure that you read the revised applications and get updated with the latest guidelines. As a reminder for second round PPP loans, the borrower will require their initial SBA loan number and the amount of the loan. Gathering small pieces of data like these from the outset can help the borrower and CPA get prepared.
Be Extra Proactive
We advise borrowers and their representatives to be extra proactive when following up on their PPP loan applications from lenders. For business owners, work closely with your financial advisers but also trust them to provide the service that you hired them for. CPAs should provide timely updates to their clients and give clear instructions. With tax season 2021 coming up, this will save everyone time while lessening anxiety.
Gather and Maintain Backup Files
The SBA aims to simplify the forgiveness process this year, and this is aligned with the new guidelines and forms they released. Although borrowers seeking a $150,000 loan (or less) are not required to submit documentation, the Agency can still request it from you during an audit. It’s best to maintain backup files of everything you submitted and supporting documents.
Compared to the initial launch of PPP last year a lot of accounting firms now have substantial experience, more guidance, and better tools to use. Hiring a reliable and trustworthy financial adviser is a vital point in the PPP process. For one, some CPAs can help you get earlier access to your PPP loan.
Levine and Associates is working with lenders who do not require you to apply for forgiveness on your first PPP loan before filing for the second one. If you think this is valuable to you, book a free no-commitment consultation with us at https://calendly.com/levine-and-associates or send us an email at josh@levineandassoc.com.