The PPP and EIDL Rules Have Changed. Now What?
Updated: Jun 24, 2020
The first and second quarters of 2020 provided challenges to all businesses as we entered an uncharted economic landscape. When the federal government offered Economic Injury Disaster (EIDL) loans and grants, and Paycheck Protection Program (PPP) loans, business owners had questions.
Fortunately, with our many years of experience supporting startups and managing transitions, Viking Advisory Group was in a unique position to answer those questions and help new and existing clients navigate and secure both EIDL and PPP financing. In some extreme cases, Viking was able to provide new clients with organized financials when there were no previous formal bookkeeping practices in place. We were able to work quickly and create the systems and reports necessary to obtain SBA financing. Clients experiencing unforeseen downturns in revenue were also able to adjust course with the financial guidance provided by the Viking team.
Navigating an Evolving Processes
While securing funds may be the first step in stabilizing through turbulence, Viking is uniquely positioned to help clients through the process of loan forgiveness.
Recent Updates to the PPP:
Additional time to allocate funds: Businesses now have up to 24 weeks (up from 8 weeks) from the date you receive the loan.
Additional time to restore your payroll: You now have until December 31, 2020 (instead of June 30) to rehire employees and/or bring wages back to 75% of pre-COVID levels.
Additional spending flexibility: Up to 40% of your loan (up from 25%) can be spent on eligible non-payroll expenses (business rent, utilities, mortgage interest) and still be eligible for forgiveness.
Additional time to pay, PPP loans now have a repayment term of five years instead of two years.
Securing Loan Forgiveness
Although the process and guidelines for loan forgiveness are constantly evolving, our in-house experts are communicating with our network of banking relationships to provide clients with the most current information available. For the most up-to-date information contact your Viking representative or visit the SBA’s PPP website.
If you have secured a PPP loan for your business and need help ensuring loan forgiveness, Viking can provide additional support with all the accounting and reporting necessary to simplify the process and work directly with your bank to reduce the burden.
There is no better time to thank our loyal customers as we continue to weather the most unique cycle of our business careers. Each of us at Viking also extends an invitation to anyone in need of CFO, accounting, or bookkeeping services. We look forward to meeting and helping your business prosper.