Good News. The Paycheck Protection Program is a Grant converting Loan for those who qualify.
Here's how your loan will turn into a grant:
Caveat. The amount that is forgiven will be reduced for businesses that lay off employees during the first eight weeks following the loan. Companies that reduce wages of employees who make less than $100,000 per year by 25 percent or more will also have the forgivable amount reduced by the amount of the pay cut.
Loophole. Businesses that have already let employees go before accepting the loan and are trying to rehire them will not be subject to such penalties, however. And if those businesses rehire employees after accepting the loan, they'll receive additional credit to cover their wages.
You will need to keep accurate records, as we are not sure how they will analyze your documents or if they will be subject to random audits at a later date.
Contact us if you need help keeping proper records.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.