This is the third in GrowthLab’s series. We previously explored, “How to Strategically Use Your PPP Loan,” and “Cash Flow Planning & Your PPP Loan.”
Let’s do a quick recap of our journey to date, before we dive into documentation. First and foremost, you need to ensure that the money is spent strategically to drive business value (not just employment). Secondly, you need to plan cash; optimize where and when you spend the money to ensure that you can get an optimal forgiveness amount balanced with optimal value for your business. And, lastly, you need to keep track of the PPP money to document your forgiveness which is what we’ll focus on here.
There was a lot of chaos going into the PPP. The law was passed and pushed through to banks without enough time to establish guidelines and expectations; but the program worked, businesses got their loans. When it comes to forgiveness, expect some similar chaos. There is a lot that we don’t know yet, but we do know that every request for forgiveness will require the right documentation. That’s the focus of this piece.
GrowthLab recommends that you keep a few things in mind and take a few key actions to keep your accounting and recordkeeping in order. Good accounting and records will help you be prepared to submit your forgiveness paperwork. Also, if you get audited by the SBA, you are going to be in a better position to prove that you were prudent in your forgiveness calculations.
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