The PPP loan program can be challenging to navigate, and there is no one-size-fits-all approach when it comes to small businesses and how the loan can best serve them.
Steven Pinsky, consulting principal (UHY New York region), has worked with a number of clients who have received PPP loans ranging from $35,000 to $2 million. Steven stressed the importance of a customized approach, saying “Our advice is to focus on maximum viability instead of maximum forgiveness. You can pay all your employees for the next eight weeks, and that’s great – you will get maximum forgiveness – but if you have to close your doors in week nine, what good is it?”
Steven also noted the importance of diligent book-keeping for businesses contemplating the strongest utilization of their PPP loan.
“We’re advising clients to open a separate bank account, disperse all money from there and keep track of the dollars that come out. Have records and copies of the checks so you can account for every dollar. Because they were rushed in deploying money, the SBA is going to be less rushed in forgiveness.”
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