Stephanie Shimp, co-owner of the Blue Plate Restaurant Company, joins "Squawk on the Street" to discuss the Paycheck Protection Program and reopening restaurants.

Small business owners lucky enough to obtain an emergency loan through the Paycheck Protection Program have an uphill battle ahead: navigating forgiveness.

The U.S. Small Business Administration has made 2.2 million loans to small businesses in the week since it’s reopened the emergency loan program.

Congress refilled the pot to the tune of $310 billion, and so far more than $175 billion in funding is already spoken for, according to a May 3 announcement from the SBA.

A large part of what made the funding so popular is the fact that the loans — which are intended to cover eight weeks of payroll expenses, as well as rent, most mortgage interest and utility costs — are forgivable.

The eight-week clock starts ticking when the employer receives the funding, which means firms could be paying workers to stay home if businesses are still subject to coronavirus lockdowns.

You must use at least 75% of the amount you borrowed for payroll expenses. Any portion that isn’t forgiven must be repaid in two years — following a grace period of six months — at an interest rate of 1%.

That’s where accountants who work with these entrepreneurs are running into trouble.

The Treasury Department and the SBA are releasing critical information in dribs and drabs via a growing list of “frequently asked questions,” but they haven’t yet provided formal guidance on forgiveness.

“From a practical perspective, it’s impossible to give guidance,” said Tony Nitti, CPA and partner at RubinBrown in Denver. “We are completely operating in the dark and some of these companies are almost halfway through their eight weeks already.”

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