Managing Your PPP Loan
by CultureSource Fiscal Services Specialist, Jane Linn, firstname.lastname@example.org
If your organization was fortunate enough to have received a Paycheck Protection Program (PPP) loan from the Small Business Association via a bank or financial institution, congratulations. Applying was not easy, nor was getting your application processed. Now you are in the management phase of the loan and we want to point you to resources to be ready to get forgiveness on part or the entire loan.
We encourage you to seek out sources of information that could answer questions that you have and help you start your planning and documentation of expenses that are forgivable, especially with limited forgiveness information available at this time.
CultureSource Emergency Relief Notes
We have posted resources to help you on the CultureSource website, in our Emergency Relief document.
Fiscal Management Associates
Access to FMA’s vast expertise has been made available to organizations in Southeast Michigan thanks to the John S. and James L. Knight Foundation. There you will see the PPP Toolkit, including an on-demand webinar on managing your PPP loan, a PPP loan guide, and a Forgiveness Calculator. You can also join FMA’s daily clinics to ask your questions about your own loan.
UHY LLP Resources
Another valuable source of information and guidance is UHY LLP. The information they have provided through their CFO Share webinar on PPP Loan Forgiveness and Options is important and concise. View the slides of their PPP presentation on our Emergency Relief document.
UHY LLP’s biggest piece of advice on managing your PPP loan is to prepare. We encourage you to take the following steps as soon as possible:
- Start now, knowing the dates of your eight-week covered period; the number of FTE’s in the two time periods you will benchmark against
- Set up a spreadsheet to record expenses that are eligible for forgiveness.
The experts at UHY LLP give their best recommendations on how to interpret and record your expense information so that as much of your loan as possible can be forgiven. And if part of that loan is not forgiven? Right now you would pay off the loan in two years at 1% interest.
We will continue to update you as we gain more information on this Paycheck Protection Program. Access to these federal resources is crucial for the survival of the arts sector, and we will do our best to help arts organizations navigate updates, changes, and information as we receive it.