As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program (PPP) was created for small businesses and nonprofits to help pay their employees during the COVID-19 crisis.
We appreciate our clients for choosing Fairfield County Bank to process and service their Paycheck Protection Program (PPP) loans. We are proud to be able to assist you and our community during this difficult time. It is important to note that obtaining the loan is just the first step. While there remain many outstanding questions when it comes to the loan forgiveness process, one thing remains clear, sound record keeping in the use of funds should be utilized.
Although we are waiting for the Government's issuance of regulations on "Loan Forgiveness," we suggest sound recordkeeping to include,
- a clear trail of the use of such funds for both payroll-related expenses and other "qualifying " expenditures
- the detailed Payroll records should include the number of full-time equivalent employees and their related compensation levels for the 8-week period following receipt of the PPP funds
If forgiveness by the SBA is not granted, the loan repayment will commence six months after the loan was approved. The loan has a maturity of 2 years, with an interest rate of 1%.Please visit the SBA website (https://www.sba.gov/funding-programs/loans/coronavirus-relief-options) for the latest information and contact your accountant for further guidance on the regulations.