The most popular relief loan in the US is the Paycheck Protection Program loan or PPP loan. Unfortunately, in a rush to get the funds out to agencies and other businesses, the Small Business Administration and Treasury Department forgot to define how the loan and its forgiveness will work.
There’s a lot of grey area surrounding the PPP, so in this episode of Build a Better Agency, tax advisor Craig Cody joins me to explain what we do know and what we’re still waiting to discover.
Craig is a Certified Public Accountant, Certified Tax Coach™, and business owner who has been following developments since day one. Many of us have applied, many of us have received funding, but not one of us knows all the rules. Craig is here to change that, to the extent that he can.
We’ll talk about the SBA’s forgivability application released on May 15th, other forgivability factors, whether or not the expenses we pay for with PPP funds will be deductible and how to manage our finances to weather whatever rules come down.
A big thank you to our podcast’s presenting sponsor, White Label IQ. They’re an amazing resource for agencies who want to outsource their design, dev or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.
What You Will Learn in This Episode:
- The PPP relief loan, what we can use it for, and what we can’t
- What we know so far about PPP eligibility for deduction
- What has changed as a result of the new forgiveness application
- Where the forgiveness application gives us the clarity that we didn’t have clarity before
- What we can make of the IRS/Congress tussle over the PPP guidelines
- Strategies we can use to mitigate our tax liability until the HEROES Act is passed
- How the alternative payroll covered period benefits agency owners
- How agencies can use PPP funds on expenses other than payroll
- How we can reimburse agency employees for working from home expenses
- How to avoid mistakes with your application
The Golden Nuggets:“The safe harbor is: if you’ve taken out a loan of less than $2M, the government is not going to come after you to prove you had other financial resources to cover costs.” @CraigC2742 Click To Tweet “The alternative payroll covered period allows agencies to adjust so they can get eight weeks of payroll loaded in.” @CraigC2742 Click To Tweet “Avoiding mistakes with your application comes down to having the calculations, the right information, and understanding what the government wants.” @CraigC2742 Click To Tweet “No amount of PPP money that has been paid out in your organization should not be forgiven if you follow the rules.” @CraigC2742 Click To Tweet “The person who is going to be in deep with the PPP is the person who is going to commit some kind of fraud.” @CraigC2742 Click To Tweet
Ways to contact Craig Cody:
- Craig’s Free Book Giveaway: http://craigcodyandcompany.com/AMIcovid/
- Website: www.theprogressivedentist.com
- Twitter: @CraigC2742
- LinkedIn: https://www.linkedin.com/in/craigcodycpa