Many small business owners have applied for Paycheck Protection Program loans, created under the CARES Act as an incentive for employers to maintain payroll during the COVID-19 pandemic.

“What is the incentive?” you may be asking.

If you meet certain requirements under the program, up to 100% of the loan proceeds may be forgiven, and in addition, there will be no income tax implications! Notably, the SBA will fully forgive all loans under the Paycheck Protection Program, provided that all borrower requirements and documentation are met.

Marcum can assist you in calculating your average monthly payroll for the loan application as well as compliance with the requirements of the loan forgiveness program. We offer interim and final field work assistance to maximize the amount of the loan forgiveness.

Eligible Expenses

  • Payroll costs
  • Group healthcare benefits (including insurance premiums) and retirement benefits
  • Paid sick, medical, or family leave where no tax credits were taken (not those under FFCRA)
  • Employees’ salaries, commissions, or similar compensation
  • Payments of interest on any mortgage obligations (not including prepayment fees or payment of principal on the mortgage itself) in place as of February 15, 2020
  • Rent (including rents under a lease agreement) in place
    as of 2/15/20
  • Utilities

Ineligible Expenses

  • Accounts payable, including payments made to proprietorships and independent contractors
  • Life insurance costs
  • Principal portions of mortgage or other debt payments
  • Payments of interest on other debt obligations established after February 15, 2020
  • Any other costs not in the first column

Considerations and How Marcum Can Help

  1. Work with you to develop a plan to maximize the forgivable amount of your PPP loan with an 8-week budget
  2. Track and analyze payroll and non-payroll expenditures within the 8-week covered period in order to make strategic business decisions related to employee levels
  3. Accumulate and organize electronic supporting documentation for funding received and expenditures to support the forgiveness calculation, which can be provided to your lender
  4. Assess the impact of rehiring terminated employees on loan forgiveness and calculate the number of full time employees per pay period
  5. Evaluate the impact of reduced employee salaries on loan forgiveness
  6. Assist with interim and final field exams
  7. Provide tax planning and strategy consulting related to the CARES Act
  8. Provide additional guidance on other potential CARES Act funding
  9. Assess long-term business liquidity concerns or cash flow modeling

Who Should Take Advantage of these services?
Bankers & Borrowers

When to Qualify?
If you haven’t applied for the PPP loan, Marcum LLP is here to assist throughout the entire process and we encourage engaging our team members at the onset of the loan application process.

If you have applied and were approved for the PPP loan, it is imperative to ask for assistance prior to receipt of the PPP funds to make sure a structure is in place to (a) properly account for the use of the funds and (b) to get the most amount of forgiveness available to you. Marcum LLP can assist entities by providing guidance in documenting the use of funds, in order to mazimize accuracy and to make sure you are timely in your loan forgiveness documentation requirements.

Benefits to Banks

  • Compliance assistance
  • Assist with satisfying documentation requirements for PPP loans
  • Facilitate timely reporting necessary for the forgiveness of PPP loans
  • Value-added opportunity to enhance bank customer satisfaction
  • Documentation of the expected forgiveness amount, for lenders who wish to sell PPP loans to the SBA at the end of week 7 or
    the 8-week period

Benefits to Borrowers

  • Assist in calculating the maximum loan amount available
  • Upon receipt of the loan proceeds, assist in calculating
    and documenting eligible expenses during the 8-week period
  • Assist in calculating the average number of full-time equivalent employees during the applicable measurement and forgiveness period
  • Documentation to demonstrate the borrower has met its
    obligation to use at least 75% of the PPP loan proceeds for payroll costs
  • Program compliance assistance for borrowers using a PEO

Coronavirus Resource Center

Have more questions about the impact of the coronavirus on your business? Visit Marcum’s Coronavirus Resource Center for up-to-date information.

SBA Task Force

Andy  Alan

Andy Alan

Director

  • Advisory
  • Fort Lauderdale, FL
Robert  Cohen

Robert Cohen

Partner

  • Tax & Business
  • Deerfield, IL
Thomas J. Filomeno

Thomas J. Filomeno

Office Managing Partner

  • Tax & Business
  • West Hartford, CT
Aaron  Fox

Aaron Fox

Director

  • Tax & Business
  • Washington, DC
Ronald  Friedman

Ronald Friedman

Partner

  • Assurance
  • Los Angeles, CA
John  Heller

John Heller

Director

  • Advisory
  • Fort Lauderdale, FL
Richard A. Izzi

Richard A. Izzi

Partner

  • Advisory
  • New York, NY
Jordan M. Kendall

Jordan M. Kendall

Partner

  • Tax & Business
  • Philadelphia, PA
Michael  Maksymiw, Jr.

Michael Maksymiw, Jr.

Partner

  • Tax & Business
  • West Hartford, CT
Dawn  Minotas

Dawn Minotas

Managing Director

  • MS&C - Financal
  • Cleveland, OH
Kellan  McConnell

Kellan McConnell

Director

  • Assurance
  • Costa Mesa, CA
Joseph  Waddington

Joseph Waddington

Partner

  • Tax & Business
  • Philadelphia, PA