SBS CPA Group Mask, Hiring, and PPP Loan update

SBS CPA Group Mask, Hiring, and PPP Loan update

This email was sent to all of our clients on July 24th, 2020 and posted on our blog/website.

We hope all is well with you and yours.  We are living in strange times and we all have to adapt and do the best we can.  Indiana has adopted a mask mandate that starts Monday July 27th, 2020.

Starting Monday, July 27th, 2020 please:

Wear a mask if you need to come into our office for any reason.  You can always use our 24 hour drop box or send us a fax or send us items via email or via secure web portal; you can also mail us items if you prefer.

Our office will be open 8:30 – 5 PM Monday – Friday.

We truly hope you and your family are happy and healthy during these difficult times.

SBS CPA Group is hiring.   We would like to hire a person who is a CPA with a lot of experience in public accounting.  We also are willing to hire a recent college graduate or maybe someone in between who has some experience in public accounting.  If you know someone who is looking for a great job in public accounting please send them our way today.

The rest of this email is for our clients who received a Paycheck Protection Program (PPP) Loan.  The loan forgiveness packages that need to be turned in to the banks are long and tedious.   Congress is considering a law to make this process easier and we hope they do make this process easier for smaller loans.

The Small Business Administration (SBA) is not currently accepting loan forgiveness packages and they say they will not accept them until at least August of 2020.

Since there is a significant chance Congress will ease the loan forgiveness rules for small businesses there is currently no reason to prepare the long and tedious forgiveness packages; however, you definitely do need to do an excellent job documenting forgivable expenses and saving receipts and proof of expenses.  Currently businesses have to apply for loan forgiveness within ten months of the last day of the loan forgiveness covered period so there is plenty of time.

Under the current rules requiring the long and tedious loan forgiveness packages:

The PPP loan forgiveness covered period starts the day the money was deposited in your business bank account or the first day of the 1st pay period after you got the money.

You will be able to pick an 8-week forgiveness period or a 24-week forgiveness period.  Most of our clients will choose the 24-week period because this will allow most of our clients to have 95% or more of the loan forgiven.

Most if not all of our clients will have to have their quarterly payroll taxes completed before they apply for loan forgiveness.

5% of our clients will be able to apply for loan forgiveness before October of 2020.

Maybe 45% of our clients will be able to apply for loan forgiveness in October of

Maybe 45% of our clients will be able to apply for loan forgiveness in January of 2021 and if this is the case, we will likely have to have the packages 90% ready to go in December of 2020 due to our busy season.

Maybe 5% of our clients will be able to apply for loan forgiveness in April of 2021.

We will be watching Congress to see if they pass a law to simplify the loan forgiveness process and we hope they do.   We will keep you updated and each bank will handle this a little differently and your bank will keep you updated on their process.

SBS CPA Group

Brent, Mike, and Karena

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