QuickBooks Paycheck Protection plan is a part of Coronavirus Aid, relief and Economy Security (CARES) Act, which covers up to $349 billion government-backed loans which help smb owners and other suitable applicants using covering payroll costs and certain operating expenses. This plan aims to encourage businesses to keep workers employed. Under the Paycheck protection plan, any small business and another eligible owner can apply for the SBA loans with low interest. They can avail up to $10 million to cover rent, eligible payroll costs, utilities, and other allowable uses.
Process of QuickBooks Paycheck protection plan (PPP)
If you are a QuickBooks user or a payroll customer and previously you filed the 2019 taxes with Turbo tax self-employed. You need to just follow the below steps to start. Before applying you need to collect all the business documents.
- Apply – You need to apply along with you relevant business documents
- Receive Funds – After applying you can get up to $10 million to cover payroll and other benefits. You can also use it for interest, rent, and utilities
- Apply for forgiveness – Your loan can be forgiven if you keep all your employees on the payroll for 8 weeks and spend your loan on some qualifying expenses.
Documents need to apply for the Paycheck protection plan (PPP)
QuickBooks Protection plan can be applied once you have collected all the necessary documents. Below is the list of those documents:
- Copy of each owner Driver license
- The operating agreement for each borrowing entity
- Article of incorporation for each borrowing entity
- Payroll expense verification
- Certification that all the employees live in the U.S.A
- List of employees who do not live in the United States with related salaries
- 12 Month profit and loss statement
- Proof of expenses such as rent or mortgage payments, interest payments on debts.
How to apply for the QuickBooks Paycheck Protection Plan
Paycheck protection plan (PPP) can be applied from the SBA’s Paycheck Protection PRogram loan through any approved SBA lender or any participating federally insured depository institutions, credit unions, etc.
How much can any eligible person avail?
Any eligible person or small business can avail up to $10 million. The maximum amount is based on the average monthly payroll costs for the applicable period multiplied by 2.5, add to the amount of any outstanding EIDL loan made between 31 January 2020 and April 3, 2020, that will be financed again minus any advanced received.
Qualified average monthly payroll expenses x 2.5] + [EIDL, Net of advance (if applicable)] = [PPP loan request amount]
How can be QuickBooks Paycheck Protection Plan loan forgiven
A Paycheck protection plan (PPP) can be forgiven with some conditions. It can be in whole or in part if you used the fundas as per the SBA.
- Only loan proceeds spend on payroll and other permissible uses during the eight weeks after the disbursement of your loan
- Maintain the same number of the employees on payroll on a minimum of 8 weeks
- Maintain employee salary levels
For any information or help regarding PPP, dial and get connected yourself with our QuickBook Helpdesk team.