The government has released billions of dollars for the Paycheck Protection Program (PPP). Many loan applications have been submitted to banks by small businesses hoping to get funding to provide continued employment of millions of workers. Money is starting to be deposited into business bank accounts. That starts off the timeclock of 8 weeks. They are beginning the 8-week period of potential loan forgiveness.
The next thing is to consider is how to best spend and account for those funds. Carefully review the forgiveness details to understand what will be forgiven and that you only seek forgiveness for allowable costs and that you maintain staffing at the right levels.
These loans were really intended to help keep people employed at pre-pandemic level, and not for general operations of the business. Small business owners need to be very careful with the PPP dollars they spend and need to make sure that they understand what amounts will be forgiven and what amounts will be nothing more than additional debt on their business. Don’t assume that just because you were given a certain loan amount that you can use all of those funds for business expenses. Please work with your accountant and your payroll company to establish the controls and audit trail of monies spent.