The Paycheck Protection Program has offered a much-needed lift for small businesses across the country, enabling them to keep their heads above water throughout the storm of the COVID-19 pandemic and the resulting economic downturn.
If you’re a small business owner who benefited from PPP support, you’re probably wondering what your next steps should be, including how you should approach the loan forgiveness process. There are lots of questions around the best way to manage it, as well as a bit of murkiness in terms of what will and won’t impact your ability to have the loan forgiven.
Given all of this uncertainty, the best thing you can do at this point is exercise a bit of patience.
For starters, businesses have 24 weeks before they’re required to complete the loan forgiveness process. Given the ups and downs that are rippling through the economy – as well as the ongoing tweaks and adjustments to the PPP itself – it’s important to take a breath and remember there’s plenty of time to determine how your small business will manage this process.
Additionally, there still is a bit of confusion around whether or not the deduction of expenses by PPP fund recipients will impact their ability to have the loan forgiven. Guidelines can feel like they’re changing on a week-to-week basis and sorting through what the new recommendations are can be challenging on your own.
As you attempt to sift through the various options in front of you, it’s important to know that having a trusted advisor in your corner can help streamline the clutter and craft a workable plan to support your small business.
To date, Padgett has seen firsthand the struggles and challenges small businesses like yours have faced during the past few months, as well as how the PPP has given many of them a lifeline. We’ve helped more than 1,000 small businesses secure more than $58 million in PPP funding, and we’re actively working with our small business clients to see how we can help them navigate what is no doubt a confusing process of loan forgiveness.
Now, it’s important to understand this is a fluid situation, as well as one that requires the preparation of a thoughtful, intentional tax plan. That’s why we feel it’s most important to engage with a trusted small business advisor to craft a smart, prudent strategy to manage your tax planning efforts for the upcoming year.
Reach out today and let us help you prepare a plan to guide your small business.