After you apply for loan forgiveness, your lender has 60 days to respond. The portion of funds that are not forgiven will accrue interest at 1% over the 2-year period from when you received the loan. No word yet on how to apply for forgiveness, what documentation of expenses are acceptable . . .
What we DON'T know about PPP forgiveness:
Whether the cash or accrual basis will be used to determine how much of the loan money was used over the 60-day period to be forgiven. The thinking is that the forgiveness will be based on payment for allowed expenses (cash basis).
What our nonprofit clients are doing:
Checking in with Grantors for extensions of time to use donor restricted funds.
Using QuickBooks OnlineLOCATIONSfeature in payroll labor distributions to separate payroll covered by the PPP loan from grant funding.
What the BudgetEase team is doing:
Buying local. We purchased "welcome back to the office" treats fromDripp'd & Drizzel'd. We are supporting the local economy while providing joy in the office.Bringing the Economy Backcan be lots of fun!
OfferingOffice Hoursfor free help in a group setting andone-hour free consultingto field questions from small organizations on scenario planning, cash forecasting, or any other bookkeeping question you may have. If you or a friend are confused, don't know where to start, or just need some guidance, sign up. We look forward to helping you through your current bookkeeping frustration.
Doing a deep dive into eCommerce bookkeeping (a tricky area) to become a national expert. We hope that eCommerce will be a growth area for BudgetEase and willBring the Economy Backwhen we need to increase our staff to accommodate the additional work.
Collecting products and gift cards from local businesses to cheer up 2020 graduates.