Q&A On PPP ForgivenessMay 07, 2020
INC. THIS MORNING Answers to 6 thorny questions that could prevent loan forgiveness The U.S. government is now almost two weeks behind schedule on answering a crucial question: How can Paycheck Protection Program (PPP) loan recipients get their loans forgiven?
The program’s forgiveness rule sounds simple: Spend at least 75 percent of the funds on payroll within an 8-week period to get your loan forgiven. But it’s more complex than it appears, and despite the government saying it would issue clarifying guidance by April 26, borrowers are still waiting. So on Thursday, Inc. editor-at-large Kimberly Weisul called up a series of finance and legal experts to ask how they’d address six of the most common points of confusion.
For example: If you got a PPP loan but you’re still closed, can you ask your employees to take all their paid vacation time now?
The answer: You likely need to mirror what you’ve done in prior years. If you run an accounting firm, and taking vacations in May and June is pretty normal, you might be in luck. But if you ask employees to take vacations simply because you have no work for them to do, you’re unlikely to have that money forgiven.
These are crucial questions, and addressing them without help can be seriously challenging. Read Weisul’s story to get the answers on loan forgiveness you need.
HERE'S WHAT ELSE I'M READING TODAY:The PPP may keep people employed, but it’s doing a lousy job of saving the country’s small businesses. --Inc.
Reopening your business may require a radical change to how--and when--you work. --Inc.
Facebook will allow most employees to work from home through the end of 2020. --CNBC
As part of its 90-day plan to fix security flaws, Zoom just made its first-ever acquisition. --Vox
Google’s newest ad policy overlooks identity theft and fraud issues. Here’s why that’s a problem. --Inc.
Quiz: Are you a better manager than the average kindergartner? --Inc.