What You Can Do Today: April 14

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.

1. 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.

2. 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.  

3. 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.