Paycheck Protection Program (PPP): Considerations When Applying

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As Paycheck Protection Program (PPP) applications are slated to start on April 3, K·Coe Isom advisors have been getting many questions and requests for guidance.  We’d like to clear the air, and provide some important considerations – for the benefit of businesses.

Important Loan Forgiveness Update

Clarification was released this week that states businesses must allocate (and demonstrate) 75% of forgivable proceeds for Payroll. 

Please keep in mind that both the CARES Act and SBA’s written guidance were put together quickly, and we expect there will be additional clarifications and guidance ongoing.  That being said, it’s important to apply in a timely manner – to maximize the benefit amount now, and minimize your risk later.

Considerations for applying for PPP right now:

  1. Don’t take the easy way with calculations. We strongly discourage any business from taking this route.  Calculating payroll according to the simplified formula on the SBA application may not properly capture a business’s total loan eligibility.  You will leave money on the table.
  1. Balance urgency with accuracy. Rushing to apply for PPP, and utilizing that money, will make businesses ineligible for other stimulus programs (Employee Retention Credits, for example) that may be more advantageous.  It pays to look at the entire picture, and evaluate everything that is available to help your business specifically.  A careful look, on a case-by-case basis, will benefit you in the long term.
  1. Copying what another business is doing will not deliver optimal benefits. For clients with multiple entities and affiliated businesses, there may be other opportunities or limitations that need to be addressed when applying.  Much of the impact will be need to be determined on a case-by-case basis, and programs should be picked in accordance with eligibility, applicability and impact.

Recommendations for Paycheck Protection Program Applications

K·Coe encourages every business to evaluate these programs – specifically, the PPP which is now accepting applications.  Check eligibility rules and assess the funding and programs that would most benefit your business (perform the calculations specific to your business, and compare programs and treatments).

Businesses, especially those with complex structure, multiple entities, or unique wage bases, should undergo a diagnostic assessment with their strategic advisor before choosing any program.

Assess and pursue suitable loan applications for your business (lenders and advisors can help here).

Contact a K·Coe advisor for questions or guidance.  Visit for additional resources and guidance.



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