PODCAST: What’s next for navigating the PPP

Written on Oct 22, 2020

By Jessica Salerno, OSCPA senior content manager 

Business owners have gotten more comfortable with the Paycheck Protection Program since the spring, but new questions are popping up. 

Man smiling for camera.

“The process around it has calmed down quite a bit,” said Ray Lampner, CPA, partner at Sikich LLP. “When it first came out there was a lot of confusion and guidance was continually changing.” 

Lampner joined us on the latest episode of the State of Business podcast to discuss how business owners are navigating the PPP and what CPAs need to know when working with clients. 

He said the past couple weeks he’s received calls from clients about loans they were issued that they shouldn’t have because of conflicting guidance. He is also beginning to notice more questions about mergers and acquisitions. 

“We're starting to have lot of people asking, ‘I've got this PPP loan; I'm not getting official forgiveness until four or five months from now. How do I do this if I'm selling my company?’” he said. “Typically, when you sell a company, all the debts are paid off at close. And if you think it's going to be forgiven, you don't want to pay that debt off. And so, there was a lot of confusion about what to do.” 

Banks are starting to take applications for forgiveness, and Lamper said he’s working with clients closely on documentation. Some banks ask for different items than others and might go beyond the list put out by the SBA. He said to remember to keep documentation for six years because that’s the length of time a client could potentially be audited. 

Lampner said he is hopeful there will be another round of PPP funding, and he thinks it might focus on proving need for the money ahead of time and showing how you're impacted. In the meantime, he said it’s crucial to stay in touch with clients. 

“Make sure that you're being proactive with your clients, communicating with them and following up to make sure that they're in front of you,” he said. “Everybody will get full forgiveness, we hope.” 

For more learning on PPP, attend the Fall CPE Virtual Conference on Dec. 10.