One day soon, we will write about matters other than government aid, the CARES Act, PPP/EIDL, etc.  But, these are extraordinary times.

So here is a piece of semi-urgent news:

It looks like the House on Wednesday will pass a deal that will add another round of funding – about $310B – for the Paycheck Protection Program (PPP).

If you applied, and heard no word: there should be more help coming for you.

If you have not applied, begin the process ASAP.

A few things worth noting about the PPP, that we’ve learned from the SBA:

  • Yes, there were headlines about some larger companies that somehow got funding, but here’s the actual breakdown per the SBA (link goes to Marco Rubio’s Twitter account, which is a great place to track the ongoing negotiation, if you’re so inclined).
  • As of a few days ago, almost 3/4 of ALL PPP loans were for less than $150K.
  • The SBA processed a total of 1.6M loans in 12 days – the equivalent of what it had processed in total over the past 14 YEARS!

Currently, 800K unprocessed applications are still in the queue with the SBA.

Which means that the next round of funding for the PPP will go similarly fast — but it also means that if you did NOT receive funding in the first round and have already submitted an application — you should be fine.

Again, if you haven’t applied, do it ASAP!

Small banks, credit unions, Paypal, Lendio, Kabbage, et al are the best places through which to apply.

And we are here to help.

Aside from PPP, there are OTHER alternatives to getting even more help that we’ve been unearthing that might even be better (in certain cases), more controllable, and perhaps even more lucrative, as example IRS payroll tax credits. We will cover those next week, after we see how this next cycle plays out.


If you already received PPP funding, keep the following in mind.

Disbursement compliance is essential. Don’t go crazy spending this money. Do it right.

The wolves will be howling to ensure that there isn’t any fraud within this slapped-together program. Which means that you need to have your ducks in a row about HOW you spend this money.

Here are a few things you need to know ASAP for these funds to be forgivable:

1)  The funds MUST be spent in the 8 weeks following the disbursement date.

2)  They cannot be spent on anything BESIDES:

  • Payroll (capped at $100,000 on an annualized basis for each employee)
  • Group healthcare premiums (employer portion only)
  • Rent/Mortgage (for the business only)
  • Utilities

3) You cannot juice these numbers by giving yourself or your employees a “bonus”. YES, you can bonus your people, but the numbers that COUNT for PPP forgiveness are the annualized figures, not *just* what is spent within these next 8 weeks.

4) You must keep 75%+ of your payroll figure intact (remember, this is called the “Payroll Protection Plan” for a reason).

By the way, on rehiring: you have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

Excellent bookkeeping is important here. This is NOT the time to cut corners.

If you have questions, we are here to help. Give us a call at (541) 326-0993.



The Team at Legacy CPA


Legacy CPA

1322 E. McAndrews, Ste #201
Medford, OR 97504
Office # (541) 326-0993
Fax # (541) 326-0650


I’m grateful for our chance to serve you and your business — and we are dedicated to its success, in every season.

Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.