Accountant Nesha Pai described the Paycheck Protection Program as "one hell of a process."
Pai, whose clients are all small businesses, said the PPP forgiveness process is seriously complicated for everyone.
“The banks are also scrambling to get answers," Pai explained. "Everyone is just scrambling.”
After months of back and forth, the latest word from Washington is businesses that got up to $150,000 from the PPP will only have to fill out a one-page affidavit and submit proof of their payroll.
Pai said that portion of the process should be fairly straightforward now, but the rest is still pretty complicated.
“Banks are hiring third parties to review the applications, and they’re also purchasing third-party software that has a lot of kinks in it," Pai said. "It took me no shorter than a four-week period back and forth with the banks because of a lot of issues with the platform.”
That’s precious time she knows her clients don’t have.
“It’s an unfair situation having to apply for forgiveness when they are just trying to stay afloat," Pai emphasized. "They don’t have time to do admin work. They’re trying to run their business.”
Pai recommends having all your relevant files ready before you apply since the application will request your 941 tax forms, payroll journals and possibly even your lease. Banks can provide lists of what's required for the PPP application if needed.
Also, Pai noted PPP expenses are tax-deductible, so business owners shouldn't get taxed on the loan they receive as long as it's considered a grant.
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