Situation
A client with multiple entities had received loans under the Paycheck Protection Program to support their businesses during the COVID-19 pandemic. Due to the uncertainty and concern for the entities’ financial position, it was imperative that the entities met the requirements for full loan forgiveness as determined by the Small Business Administration and their lenders. As a result, the company wanted assistance in navigating and understanding the program’s requirements to ensure that their entities would utilize the funds in line with the program that would maximize the likeliness of total loan forgiveness.
Action Taken
The company engaged with CBM, whose professional staff had been actively following and understanding the requirements of the program, to assist with monitoring staffing levels and disbursement of the loan proceeds to ensure program compliance. CBM professionals have been hosting public webinars and actively monitoring the guidance releases from the Small Business Administration and the Internal Revenue Service. This put CBM in a unique position to offer assistance to PPP loan recipients to provide funds tracking (see our funds tracking worksheet in the Coronavirus Resource Center) and data organization to ensure ongoing compliance with the current rules and regulations.
Result
Once the eligible period for spending PPP funds concluded, the company was able to have detailed information that clearly portrayed all the pertinent data required for the loan forgiveness application process. The data was accumulated and organized by the professional staff of CBM, whose technical understanding of the Paycheck Protection Program processes allowed them to organize raw data into the Small Business Administration’s requested format and schedules. Further, CBM’s assistance ensured that the company complied regarding staffing and pay levels required for loan forgiveness, thereby removing the threat of any reductions in the amount forgiven. As a result, the company’s engagement with CBM ensured that the company and its multiple entities is in the best position to achieve total loan forgiveness.