Loan Forgiveness Analysis

PPP Loan Forgiveness Calculation Analysis Services

The Paycheck Protection Program – the key employment stabilization component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law March 27, 2020 – is intended to incentivize companies with fewer than 500 employees to keep staff during the difficult COVID-19 economic conditions. And for borrowers, the PPP’s most attractive element is its potential for loan forgiveness.

The PPP Loan Forgiveness Application – What You Need to Know
On May 15, 2020, the Small Business Administration (SBA) announced its long-awaited forgiveness rules through its release of the PPP Loan Forgiveness Application. While Treasury prepares to issue “regulations and guidance to further assist borrowers” – you need a team that can help you navigate the process while you focus on your business. Herbein – We’re here for you.

The PPP Loan Forgiveness Application – Key Points
Herbein is now able to provide a comprehensive evaluation to determine loan forgiveness. Did you know: 

• The Small Business Administration (SBA) stated that no more than 25% of forgiveness can be from non-payroll costs. The SBA has also clarified that any interest that accrues before the loan is forgiven or paid will be at the borrower expense.
• Full forgiveness will not be available if you reduced FTEs during the covered period or reduced pay of an employee making less than $100,000 by more than 25%.
• Your lender will ultimately determine the loan forgiveness amount and upon receipt of the forgiveness request and necessary documents, will have 60 days to approve or deny the forgiveness.

Our Process = Your Peace of Mind
Based on the SBA’s current guidance, our experienced professionals will deliver the timely, efficient services that help businesses determine their level of forgiveness.

• Our streamlined process centers on an easy-to-use collection form for employers to complete as step one of the process. This will entail a detailed review of employee compensation.  Herbein will determine the allowable/non-allowable portions of employee wages.  We will also determine other factors which will affect forgiveness, including mortgage interest, rents/leases, and utilities.
• Our report will provide a detailed account of loan forgiveness based on the timing relative to 8-week starting point (or subsequent payroll period). We will provide commentary on opportunities and potential issues that may preclude full loan forgiveness (based on the information you provide.)

Talk to us today: Reach out to your Herbein advisor or complete the form below.