Resources and LP's response to COVID-19.
Even among this disruption, there are a few things you can do today to help prepare you, your family and your business for the uncertain future.
- Make a plan for your PPP funds. Congratulations, you were approved for a PPP loan. Now what? Once your company receives the funds, an eight week “use” clock starts ticking. So, in order to manage your use wisely, you should prepare a plan for maximizing forgiveness.
- Know what to do if your employee gets sick. We’ve said it before, and it’s worth saying again – keep up with the guidance issued by the CDC. They just came out with new direction on what to do if your employee becomes exposed to COVID-19 and how to prevent the spread.
- Read the SBA’s new guidance. Another day, another update from the SBA. This one is about how to deal with compensation for partners in a partnership. Previously, the SBA indicated that the compensation of partners in a partnership or members in an LLC could not be included in a PPP loan calculation as it held each partner eligible to file its own PPP application. However, this has just been reversed.
Now, a partners’ self-employment income (up to $100,000 annualized each) may be included in a partnership’s payroll calculation to determine the maximum loan amount. Under this new guidance, partners may not submit a separate PPP loan application as a self-employed individual. Instead, a partnership and its partners will be limited to one PPP loan.
For more resources and LP's response to COVID-19, visit this webpage.