1. Gather all necessary financial documents:
Start by collecting your payroll records, utility bills, mortgage interest payments, and lease agreements. These documents will serve as evidence of eligible expenses.
2. Calculate eligible payroll costs accurately:
Ensure that you correctly calculate the average monthly payroll costs, including salaries, wages, tips, and benefits, according to the PPP guidelines.
3. Determine if any non-payroll expenses are eligible:
Certain non-payroll expenses like rent, utilities, and mortgage interest are eligible for forgiveness. Make sure you have supporting documents for these expenses.
4. Maintain or restore your employee headcount and compensation:
To maximize forgiveness, maintain your pre-pandemic employee headcount and salaries or take steps to restore them if reductions occur.
5. Understand the 60/40 rule for eligible expenses:
At least 60% of the loan amount must be used for payroll costs, with the remaining 40% allocated to eligible non-payroll expenses.
6. Document any reductions in employee headcount or salary:
Keep records of any reductions in staff or salary, along with the reasons for these changes.
7. Keep records of how you spent your PPP funds:
Detailed records of expenditures are essential to demonstrate compliance with PPP guidelines.
8. Review and complete the PPP forgiveness application provided by PNC:
Thoroughly review the forgiveness application, ensuring all information is accurate and complete.
9. Submit your forgiveness application and supporting documents to PNC:
Submit your application along with all required documentation promptly to initiate the forgiveness process.
10. Stay informed about updates and changes to PPP guidelines:
Regulations and requirements may change, so stay up to date with the latest information to ensure full forgiveness of your PPP loan.
