The CARES Act provides for potentially forgivable loans from the SBA called the Paycheck Protection Program (PPP). Read the Act’s full text.
Funds loaned under the PPP may only be used for the following items (although the Act does provide some exceptions):
- Payroll costs
- Costs related to group health care benefits during paid sick, medical or family leave, and insurance premiums
- Employee salaries
- Mortgage interest payments
- Interest on any other debt obligations incurred before the Act’s covered period (6/5/2020 Update: Pursuant to the Paycheck Protection Program Flexibility Act of 2020, the covered period for PPP loans has been extended to 24 weeks after loan origination or December 31, 2020).
Contact your bank or the SBA if you have not already done so to learn more about this program, your eligibility and remaining availability. Loans for this program are available until June 30, 2020. Contact your bank now to learn more about this important program and whether it is right for your business.
Request PPP Loan Application Reports
PayNorthwest is ready to assist with providing the reports that are requested during the application process. Contact us to begin compiling your PPP reports using the data in your payroll system.
Tracking PPP Funds
Please contact your lender with questions related to requirements for tracking allowable uses for loan forgiveness. The loan forgiveness application and instructions are available from the SBA.
Payroll-related expenses processed within the PayNorthwest system are easily reportable on the Payroll Register. Please contact us if you require additional assistance with these reports.
More Paycheck Protection Program Resources
- Small Business Administration Paycheck Protection Program
- PPP Loan Forgiveness Application
- CARES Act Sec. 1102. Paycheck Protection Program (F) Allowable Uses Of Covered Loans and Sec. 1106 Loan Forgiveness
- PPP FAQs from treasury.gov
- Paycheck Protection Program Flexibility Act of 2020