PPP Loan Funds Received, Now What?

We are excited for you if you have received your PPP loan proceeds. At this point, we still do not have the final guidance released on the loan forgiveness rules. We are hoping this will be released any day now. In the interim, we recommend the following for PPP loans:


  1. Deposit the PPP funds into a new bank account. If you need to temporarily deposit it into your main business checking account, that is okay. You can transfer the money over as soon as the new account is opened.  Having a separate account will make it much easier to keep track of how the PPP money is spent.


2. If you have your main business account automatically paying for payroll and taxes by EFT, please keep it the same. Do not have payroll and taxes automatically taken from the PPP loan account. Instead, the PPP account will reimburse your main business checking account for the portion of payroll and other expenses that will be forgiven. This reimbursement will be done for payroll costs, rent, utilities, and mortgage interest.

    1. Please take note: not all of your payroll costs will be forgiven. Therefore, it will be important for the PPP account to reimburse the business account for the part that will be forgiven. We will give you this exact calculation as soon as we have the final regulations.


3. Once the final regulations come out, we will help formulate a plan to maximize loan forgiveness. This plan will also include what you pay yourself. If you need to take payroll before the regulations are out, please let us know. Otherwise, we recommend holding off for at least another week.


4. If you can use non-PPP loan money to pay for current expenses, even if those expenses seem to qualify for loan forgiveness, we strongly recommend that you use non-PPP money. After we have the final guidelines, you can use the PPP loan proceeds to reimburse your bank account.


5. Please see the following link for additional PPP loan information (we sent this blog on 4/16/20): https://www.fluenceportland.com/strategy/updates-regarding-the-eidl-and-ppp-loans

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