Accountants + Business Advisors

NEXT STEPS: You’ve applied for a PPP loan…your next steps are critical & urgent

4.9.20

NEXT STEPS: You’ve applied for a PPP loan…your next steps are critical & urgent

Thursday, April 9, 2020

Your PPP Loan Has Been Applied For…Your Next Steps Are Critical and Urgent

Note: If your business has been deemed as Non-Essential under a Shelter In Place Order, the actions prescribed in this article are especially urgent.

AGP has been working hard these past few weeks to guide our clients and friends and provide critical information needed to maximize their Paycheck Protection Program (PPP) loan applications. We are now pivoting to Phase II of our COVID-19 advisory services, which will be focused on providing guidance and information to make the best strategic business decisions as companies prepare to receive the PPP loan proceeds.
 
We want to communicate two urgent thoughts for businesses (especially those defined as Non-Essential under Ohio’s Shelter In Place order):
 
First, we understand once the SBA has approved a PPP loan, banks must disburse proceeds within 10 calendar days. If you can delay the distribution of funds by the maximum 10 days, you could potentially improve your utilization of PPP loan funds by deferring collection and the start of your 8-week forgiveness period to a date closer to the date you are allowed to return to work. You should contact your bank representative and urge them to delay your loan disbursement date as long as possible within the 10-day window.
 
Second, and unfortunately too complex for an email, there are several variables that you should consider when deciding when and “at what pace” to rehire workers currently on unemployment. We have developed a calculator to “do the math” surrounding these variables and urge you to contact your engagement principal or a member of the COVID-19 Response Team that can assist you with these important business decisions and calculations before making your rehire decisions.

Our COVID-19 Response Team is standing by, ready to help your business apply with your engagement principal. We’re proud to be your partner in navigating these continuous developments. Contact our COVID-19 Response Team with any questions.

Your AGP COVID-19 Response Team

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