Supplier costs that are essential to the borrower’s operations and were obligated under contracts or purchase orders in place prior to loan disbursement (more flexible rules apply to purchases of perishable supplies).Property damage costs due to 2020 public disturbances that were not covered by insurance. ![]() Payments for software or cloud computing services that are used to facilitate business operations such as payroll, accounting functions, human resources, sales and billing functions, etc.Yes, but an entity that first receives a PPP loan will have that loan netted against its SVO Grant.Ĭan you elaborate on the “outside payroll costs” for the new non-payroll costs? Yes, employer paid state unemployment costs are includable in both the loan application and forgiveness calculations.Ĭan an entity receive a PPP loan and an SVO grant? If we don’t have unemployment insurance, can we claim unemployment expenses paid to the state as employment costs? For ERC, only employees providing services within the United States are considered in the full-time employee count for determining an employer size. The parent company becomes an affiliate because they have control over the subsidiary. When we check the company size, do I need to consider our overseas parent company head count or only our local employee in US?įor PPP, you will need to consider the parent company’s employee count as well. We have not seen banks requesting audited financial statements as audited financial statements are typically on a yearly basis and not by quarter. We have only seen banks requesting signed internal financial statements. The other costs, such as rent, mortgage interest, and utilities, are unable to be included for the calculation of the loan amount.Īre banks requesting CPA audited financial statements with a cover letter from a CPA proving the 25% decline in revenue? How can you include other costs in the application?įor the application, the calculation is only based on payroll and other payroll related items. General Q&A for PPP Loans, ERC Credit and Shuttered Venueįor PPP, coverage of some costs are allowed (rent, some supplier costs) but you are only allowed to ask for 2.5x payroll costs. Q&A for ERC for Private Equity, Venture Capital and Family Offices.General Q&A for PPP Loans, ERC Credit and Shuttered Venue.If you have ERC questions or would like to set up an ERC scoping discussion, email us at For PPP loan inquiries, contact John Carpenter at Us ![]() We also are sharing a recording of the panel discussion that you can review and share with colleagues. ![]() Our guests submitted so many great questions that we decided to share them all with you along with answers from our panelists. Cherry Bekaert’s Tax Team hosted a panel discussion on February 9 th about PPP Loans and the Employee Retention Credit.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |