Mazars USA LLP has developed and released an analysis tool to help small businesses calculate the amount they are eligible to receive from the Paycheck Protection Program (PPP). The tool is available for small businesses, CFOs and accounting firms to help them navigate the program, which can be complex, and increase the speed of the application process.
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law March 27, the PPP can provide a loan of up to $10 million to address the damage caused by COVID-19, covering eight weeks of payroll, rent, mortgage interest and utilities. The loan is intended to be a lifeline for small businesses with fewer than 500 employees during a very challenging economic environment.
The PPP Analysis Tool helps businesses optimize the greatest loan amount while maximizing loan forgiveness under the provisions of the CARES Act.
Mazars warns that the PPP has many nuances and pitfalls that companies need to be aware of. The tool aims to help companies analyze the impact of timing of headcount reductions, employee furloughs and pay reductions on the loan amount and loan forgiveness.
The PPP has a fixed amount of funding and Mazars USA recommends that companies apply early.
The tool can be downloaded here:
