Paycheck Protection Program Explained

April 7, 2020

On Friday, the federal government rolled out its Paycheck Protection Program ("PPP", formerly referred to as PPL in our communique). This program provides small businesses with less than 500 employees the opportunity to borrow up to $10 million and the opportunity to have some or all of the loan forgiven to the extent it is used for payroll, rents, and certain other recurring expenses of the business during an eight week period between February 15, 2020 and June 30, 2020.

As one can imagine, there has been a mad rush to apply for the loans which could very well transform into government grants to small businesses. 

Questions and confusion reigns with respect to who is eligible and how to calculate the amount of the loan. The attached Forbes article authored by Tony Nitti articulates these questions and the general consensus of practitioners.  Paycheck Protection Program Loans: Three Things The SBA And Banks Need To Agree On Now. 

We are also providing you with the attached example and a template that quantifies the amount of loan available to your business using the consensus of the practitioners and banks that we've communicated with.  

We encourage you to contact your banks and submit your PPP loan application.  Should you have any questions, please don't hesitate to contact us.  We are here to help.

Please do not hesitate to contact with any questions or concerns. www.pwcpa.com 212 605 3100

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