[PPT] - Planning g to U Use Y Your L Loans Moderator/Host PowerPoint Presentation

SLIDE 1

Planning g to U Use Y Your L Loans

Moderator/Host jeff@jeffbelkora.com May 7, 2020 Presented and Sponsored by Thomas Doll, CPAs travis@thomasdoll.com, brett@thomasdoll.com Tomorrow (May 8) afternoon: Access webinar slides/recording/materials from https://thomasdoll.com/covid-19/

Also see April 29 webinar and white paper on Planning to Reopen

SLIDE 2

Ove verview

1. Objectives: Maximize Health of Your Patients and Practices
2. Primary Audience: Thomas Doll accounting/bookkeeping clients
3. Today: webinar, FAQ, Expense Eligibility Guide & Forgiveness Tracker (ADCPA)
4. Accounting/bookkeeping clients: use materials, get help from TD team
5. Others: use materials, submit a request for consultation

− See https://thomasdoll.com/request-consultation

Disclaimer: today’s guidance may be superseded by SBA at any time!

Tomorrow (May 8) afternoon: Access webinar slides/recording/materials from https://thomasdoll.com/covid-19/

SLIDE 3

Pl Planning to U Use PPP PPP and E EIDL Funds

.

May 7, 2020 Tomorrow (May 8) afternoon: Access webinar slides and recording at thomasdoll.com/covid-19/ Travis Slade, CPA travis@thomasdoll.com Brett LeMmon, CPA brett@thomasdoll.com

thomasdoll.com

SLIDE 4

Agenda

Overview of SBA Programs
How to Use Your SBA Funds
Frequently Asked Questions

thomasdoll.com 4

SLIDE 5

Ov Over erview o

f S

SBA L Loans

Economic Injury Disaster Loan (EIDL)
Intended Purpose
Quick funds to help business
Amount
Applicants could receive up to $10,000 or

$1,000 per employee

Does not need to be repaid
Status of the Program
Money will appear in your account. EIDL

applications are still being processed

No new applications at this time
Intended Purpose
Loan working capital to companies in

distress

Amount
Up to $2 million
Repaid over 30 years, 3.75%
Status of the Program
Will be contacted by SBA to confirm you

want to take out this loan

EIDL applications are still being processed
No new applications at this time

EIDL – Emergency Advance (Grant) EIDL – (Loan)

thomasdoll.com Overview of SBA Programs How to Use Your SBA Funds FAQs > EIDL, PPP 5

SLIDE 6

Paycheck Protection Program (PPP)
Intended Purpose
Help employers pay employees during COVID-19 crisis
To keep employees off unemployment
If funds used for qualified purposes (mostly payroll), the loan would be forgiven
Status of the Program
Round 1: $349 billion started on April 3rd; ran out on April 16th
Round 2: $310 billion replenished on April 27th
Can still apply? Yes (~$135 billion left as of 5/1/2020)
Large banks struggling to keep up with applications. Generally speaking, small

businesses were neglected in the early stages

Overview of SBA Programs How to Use Your SBA Funds FAQs > EIDL, PPP

Ov Over erview o

f S

SBA L Loans

thomasdoll.com 6

SLIDE 7

Using Your S SBA F Funds

DISCLAIMERS
Lack of guidance on the application of PPP rules
You need to make decisions now. We will give you our best understanding of

things today

May be superseded tomorrow
PPP legislation may change
Do you qualify as having an “economic hardship”
You have been closed since March 16
If you aren’t sure, seek legal counsel

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 7

SLIDE 8

Using Your S SBA F Funds

EIDL Advance Payment
Timing of the PPP
Qualified Expenses of the PPP
PPP Forgiveness Basics
Areas of Uncertainty
Case Studies
Possible Strategies

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 8

SLIDE 9

Economic I Injury Disaster Loan ( (EIDL) L) Advance P Payment

What can I use these funds for?

Refer to expense guide
Can be used for almost any business expense
Avoid expenses that can be paid with PPP funds
CANNOT Use for
1. Owner draws/distributions
2. Refinancing other debt

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 9

SLIDE 10

Example A

A. Theoretical Funds

Received $10,000 EIDL Advance $60,000 PPP $70,000 Total Funds

B. Eligible PPP Forgiveness

$50,000 ($60,000 PPP - $10,000 EIDL Advance)

Example A Example B Example C

A. Theoretical Funds

Received $10,000 EIDL Advance $60,000 PPP $70,000 Total Funds $0 EIDL Advance $60,000 PPP $60,000 Total Funds $10,000 EIDL Advance $0 PPP $10,000 Total Funds

B. Eligible PPP Forgiveness

$50,000 ($60,000 PPP - $10,000 EIDL Advance) $60,000 ($60,000 PPP - $0 EIDL Advance) NA

C. Total Amount of “Free”

Money $60,000 ($50,000 Line B + $10,000 EIDL Advance) $60,000 ($60,000 Line B + $0 EIDL Advance) $10,000

D. Amount of Non-

Forgivable Funds (becomes a Loan if not repaid) $10,000 ($70,000 Line A - $60,000 Line C) $0 ($60,000 Line A - $60,000 Line C) $0 ($10,000 Line A - $10,000 Line C)

Example A Example B

A. Theoretical Funds

Received $10,000 EIDL Advance $60,000 PPP $70,000 Total Funds $0 EIDL Advance $60,000 PPP $60,000 Total Funds

B. Eligible PPP Forgiveness

$50,000 ($60,000 PPP - $10,000 EIDL Advance) $60,000 ($60,000 PPP - $0 EIDL Advance)

C. Total Amount of “Free”

Money $60,000 ($50,000 Line B + $10,000 EIDL Advance) $60,000 ($60,000 Line B + $0 EIDL Advance)

D. Amount of Non-

Forgivable Funds (becomes a Loan if not repaid) $10,000 ($70,000 Line A - $60,000 Line C) $0 ($60,000 Line A - $60,000 Line C)

Example A

A. Theoretical Funds

Received $10,000 EIDL Advance $60,000 PPP $70,000 Total Funds

B. Eligible PPP Forgiveness

$50,000 ($60,000 PPP - $10,000 EIDL Advance)

C. Total Amount of “Free”

Money $60,000 ($50,000 Line B + $10,000 EIDL Advance)

Example A

A. Theoretical Funds

Received $10,000 EIDL Advance $60,000 PPP $70,000 Total Funds

B. Eligible PPP Forgiveness

$50,000 ($60,000 PPP - $10,000 EIDL Advance)

C. Total Amount of “Free”

Money $60,000 ($50,000 Line B + $10,000 EIDL Advance)

D. Amount of Non-

Forgivable Funds (becomes a Loan if not repaid) $10,000 ($70,000 Line A - $60,000 Line C)

EI EIDL Ad L Advance Payment

Your EIDL Advance reduces the amount of your PPP forgiveness

Example A

A. Theoretical Funds

Received $10,000 EIDL Advance $60,000 PPP $70,000 Total Funds Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

A. Theoretical Funds

Received

B. Eligible PPP Forgiveness
C. Total Amount of

Potentially “Free” Money

D. Non-Forgivable Funds

(Becomes a Loan) thomasdoll.com 10

SLIDE 11

PPP T Tim imin ing

Origination Date 8-Week Covered Period End of Covered Period Apply for Forgiveness Bank Forgiveness Deadline Bank Receives SBA Approval 60 Days 10 Days to Disburse Funds to Your Bank Account

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 11

SLIDE 12

PPP T Tim imin ing

Origination Date 8-Week Covered Period End of Covered Period Closed Reopening Closed Reopening Reopening Reopening Closed Closed

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 12

SLIDE 13

PPP E Elig igib ible E Expenses

Please refer to detailed expense guide

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 13

SLIDE 14

PPP E Elig igib ible E Expenses

Practice Expenses/Costs PPP Eligible PPP Eligible for FORGIVENESS Payroll Costs Rent Utilities Mortgage Interest (business real estate) Other Debt Interest (ex. practice loan) Personal Protective Equipment (PPE) NO NO NO

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 14

SLIDE 15

PPP Eligible e Expen penses f es for F Forgiven eness ess

Payroll Costs
Rent
Utilities
Mortgage Interest
Applies to expenses that are “incurred” and “paid” during the eight-week

covered period

Prior hours?
Prior utility/rent expenses prior to the time you received PPP funds?

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 15

SLIDE 16

PPP E Elig igib ible E Expenses

Payroll Costs

Salary, wages, and tips (up to $100,000 of annualized per employee)
For sole proprietors, owner compensation replacement (up to $100,000 annualized)
Health care expenses (group health plans)
Retirement contributions (employer paid contributions; 401k deferrals taken from wages)
State taxes imposed on employee payroll paid by the employer (ex. state unemployment

insurance)

Employer FICA taxes (Medicare and Social Security taxes) are NOT included as a covered

payroll cost (~7.65%)

Becomes a cost you must pay to obtain forgiveness

Questions

Can you pay bonuses?
Doing things you never did before?

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 16

SLIDE 17

PPP E Elig igib ible E Expenses

Rent and Mortgage Interest

Mortgage and rent agreements in place prior to February 15, 2020
Only mortgage interest, not principal

Questions

Related party rent (get a lease agreement in place if you don’t have one)
Prepaid rent or backpay rent

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 17

SLIDE 18

PPP E Elig igib ible E Expenses

Utility Expenses

Services must be in place prior to February 15, 2020
Payments for a service for the distributions of
Electricity
Gas
Water
Transportation
Telephone
Internet Access
Question
Are security or waste management included?
What is meant by transportation?

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 18

SLIDE 19

PPP Forgiven enes ess B s Basi sics

1. Must spend a minimum of 75% on payroll costs
What happens if you spend less than 75%, do you lose all benefits?
2. Must maintain same number of employees
Generally understood to mean the same full-time equivalent (FTE) employees
n 6/30/2020 as you had on 2/15/2020
Doesn’t have to be same employee; similar pay and similar hours
If employee refuses to come back, it will not penalize your FTE calculation

(document the employees' refusal to come back)

3. Must maintain same salary and wages
4. IRS will not allow you to deduct expenses that are forgiven

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 19

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Seek eking F Forgiven eness ess

Banks will require detailed documentation to verify expenses
Payroll reports to verify full-time equivalent employees
Payroll reports to verify employee pay rates
Payroll tax filings
Cancelled checks, payment receipts, or other documents to verify

payments for mortgage debt, rent expenses, and utility expenses

Banks don’t have guidance on determining forgiveness
Banks calculated loan application amounts differently…

forgiveness may be calculated differently as well

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 20

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Area eas o

f U

Unc ncer ertainty

Changing 8-week covered period to align with reopening

business

Changing 8-week covered period to align with payroll cycles
How to calculate full-time equivalent (FTE) employees
How soon and for how long do rehired employees need to work

for the borrower to eliminate any reduction in FTE employees

How will the “incurred” AND “paid” guidelines be applied
Rent paid to related parties has not been specifically addressed

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 21

SLIDE 22

Case S se Studies es

Case Study A: Associate Doctor (Appendix)
Case Study B: Early Reopening
Case Study C: Late Reopening (Appendix)

*Using our PPP Expense Tracker Spreadsheet

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 22

SLIDE 23

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

23

SLIDE 24

Assume practice received

an EIDL Advance

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

24

SLIDE 25

Assume practice received

an EIDL Advance

Assume funded on 5/1 and

that FTE’s will be consistent

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

25

SLIDE 26

Assume that

your office will not reopen until May 15

For the first pay period, the
nly person on your payroll will

be you, the owner.

Calculation:

100,000/52 X 2 weeks = 3,846

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

26

Notes for Paying Owners (Paying the $100,000 compensation limit)
Pay yourself on a weekly calculation
$100,000 / 52 weeks = $1,923 per week
$1,923 x 8 weeks = $15,385
Do NOT Pay yourself on a monthly

calculation

$100,000 / 12 months = $8,333 per mo.
$8,333 x 2 months = $16,667

SLIDE 27

By the next

pay period, you will have rehired your staff

When you bring back your

staff, plan on paying them full wages

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

27

SLIDE 28

If 5/1 is your

start date, then 6/25 is your end date of the covered period

Notice that

there are days worked that are inside of the covered period, but if the pay date is after the covered period, you need to be careful

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

28

SLIDE 29

You may need

to consider a special payroll run

Ensure the

pay date is before the end of the covered period (6/25/2020 in this example)

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

29

SLIDE 30

Also track

your rent and covered utility expenses

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

30

SLIDE 31

Notice that even though

you did not pay your staff the first pay period, you are still close to 75% in payroll costs.

Since your payroll is less

than 75%, some of your

verhead will be

reduced.

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

31

SLIDE 32

Consider

funding your retirement plan

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

32

45,000 Profit Sharing (estimated for 2020) / 52 weeks x 8 weeks covered period = 6,923

SLIDE 33

Now we are at 75% in

payroll costs.

Your overhead expense is

not reduced

Notice we still have some

forgivable PPP funds to use if needed.

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

33

SLIDE 34

Consider

doing a bonus (if allowable)

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

34

SLIDE 35

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies

Case S Study B B: Early Reopening

After retention pay, you

have maxed out the amount of your forgivable loan.

You still have $10,000

that is not eligible for forgiveness (due to receiving EIDL advance)

Use this money if needed,
r pay it back to not have

a loan payment

35

SLIDE 36

Possi ssible S e Strateg egies es

Focus on doing what is best for your practice, not what is best for

PPP forgiveness

Consider only paying the wages necessary to ensure all your rent

is forgiven

If you are tight on cash, consider holding on to PPP proceeds as

working capital

Pass on getting the maximum forgivable amount and only spend the

money on needed payroll

If you are not tight on cash, you may want to consider getting the

maximum forgiven amount

Overview of SBA Programs How to Use Your SBA Funds FAQs > Disclaimers, EIDL Advance, PPP Timing, Eligible Expenses, Forgiveness Basics, Uncertainty, Case Studies, Strategies thomasdoll.com 36

SLIDE 37

FA FAQs

thomasdoll.com 37 Overview of SBA Programs How to Use Your SBA Funds FAQs

SLIDE 38

Can I pay deferred rent or prepaid rent during the 8-week covered

period?

Current regulations specify that expenses should be both paid AND incurred

to be able to qualify for loan forgiveness.

Meets the “paid criteria” but may not meet the “incurred” criteria since the

expense originates from a time before, or after the 8-week period.

Keep in mind that only 25% of your PPP loan proceeds can be used for non-

payroll items.

thomasdoll.com 38 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 39

Can I get unemployment if I received a PPP Loan?
The law is intended for employees to get off unemployment and back on

normal payroll.

A normal paycheck from PPP funds is considered employment
There are exceptions for employees who are hired back at a minimal amount
f hours.

thomasdoll.com 39 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 40

How much can you pay yourself as an owner?
You are limited to $100,000 in annual compensation
Even for a sole proprietor
We interpret this to be applied as follows
100,000 / 52 weeks in the year x 8 weeks in PPP period = 15,385

thomasdoll.com 40 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 41

Can I put my family on payroll?
You may use PPP funds to put family members on payroll but proceed with

caution

Were your family members already on payroll prior to 02/15?
If you hire your family members prior to putting existing staff back on payroll

you could be at risk of discrimination lawsuits.

We recommend consulting with a labor attorney or HR representative.

thomasdoll.com 41 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 42

Do I need to open a second bank account?
No
It’s okay if you have already opened a second bank account, but it is not

necessary.

Full-service bookkeeping clients of Thomas Doll will have income and

expenses tracked as usual and an adjustment will be applied on the books to account for the PPP loan proceeds.

thomasdoll.com 42 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 43

If I have been approved for my loan, can I time its disbursement so

that the 8-week window to spend the money starts just before reopening?

No – Banks are required to disburse the funds within 10 days after the date of

loan approval.

thomasdoll.com 43 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 44

Will the starting time for the 8-week covered period of the PPP loan

be adjusted or extended?

We do not know – but not optimistic
The American Institute of CPAs recommended that to the SBA that PPP

recipients be allowed to begin the 8-week covered period when operating restrictions are lifted, rather than the date loan proceeds are received – Not yet approved

The American Dental Association has also put in requests for this and has

lobbied from the beginning

If closed, start using money where it makes sense for you

thomasdoll.com 44 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 45

Regarding PPP loan, don’t you have to have your payroll equivalent to

the prior levels for payroll to be forgiven.

If 75% of the PPP is not used towards wages, you are subject to a reduction in

loan forgiveness.

The reduction is based off of the number of full-time employees at the end of

the 8-week covered period when compared to the number of FTE’s 02/15.

Loan forgiveness also reduced if the amount paid out as gross wages drops

more than 25% when compared to the prior quarter.

thomasdoll.com 45 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 46

How do we use the PPP loans when we are not open when the

requirement is to use 75% for payroll within 8 weeks of receiving the funds?

1. Consider taking portion of the loan proceeds as working capital
2. Consider going for partial loan forgiveness and pay back the extra you don't

use (get yourself on payroll, pay utilities/rent, consider paying spouse?)

3. Continue to go for full loan forgiveness by brining staff back on payroll,

working or not.

thomasdoll.com 46 Overview of SBA Programs How to Use Your SBA Funds FAQs

FA FAQs

SLIDE 47

Thank Yo You

thomasdoll.com

Tomorrow (May 8): Access webinar slides and recording at

thomasdoll.com/covid-19/

Travis Slade, CPA travis@thomasdoll.com Brett LeMmon, CPA brett@thomasdoll.com

47

SLIDE 48

Appendix

thomasdoll.com 48

Case Study A: Associate Doctor
Case Study C: Late Reopening

SLIDE 49

Case se S Study A: A: Asso Associate D Doctor

Assume associate’s loan

amount was primarily related to her own wages.

Appendix > Case Study A, Case Study C 49

SLIDE 50

Assume that she is a sole

proprietor and her PPP loan amount was based on her Schedule C income

Case se S Study A: A: Asso Associate D Doctor

50 Appendix > Case Study A, Case Study C

SLIDE 51

Draws are limited to $100,000 per

year.

Calculation for first draw
$100,000 / 52 weeks *

x 4 weeks in pay period = $7,692

Notes for Paying Owners (Paying the $100,000 compensation limit)
Pay yourself on a weekly calculation
$100,000 / 52 weeks = $1,923 per week
$1,923 x 8 weeks = $15,385

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

Case se S Study A: A: Asso Associate D Doctor

Do NOT Pay yourself on a monthly

calculation

$100,000 / 12 months = $8,333 per

mo.

$8,333 x 2 months = $16,667

51 Appendix > Case Study A, Case Study C

SLIDE 52

Make sure you complete your

wner draws before the end
f the covered period.

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

Case se S Study A: A: Asso Associate D Doctor

52

SLIDE 53

Associate does not have
rent. Limited utilities.

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

Case se S Study A: A: Asso Associate D Doctor

53 Appendix > Case Study A, Case Study C

SLIDE 54

Her payroll/draws are 75%
r more of expenses
All the expenses are

“ALLOWED”

She didn’t spend all of her

PPP money

$4,476 will be a loan

Case se S Study A: A: Asso Associate D Doctor

54 Appendix > Case Study A, Case Study C

SLIDE 55

Case S Study C C: Late R Reopening

55 Appendix > Case Study A, Case Study C

SLIDE 56

Same loan amounts as

Case Study B

Case S Study C C: Late R Reopening

56 Appendix > Case Study A, Case Study C

SLIDE 57

Closed until the first

week of June

CLOSED CLOSED CLOSED (Half of this pay period)

Case S Study C C: Late R Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

57 Appendix > Case Study A, Case Study C

SLIDE 58

Your first full

pay period isn’t until the end of the covered period

Case S Study C C: Late R Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

58 Appendix > Case Study A, Case Study C

SLIDE 59

You may want

to consider pre-paying profit sharing for 2020

$46,000 Profit Sharing (estimated for 2020) / 52 weeks x 8 weeks covered period = $7,077

Case S Study C C: Late R Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

59 Appendix > Case Study A, Case Study C

SLIDE 60

Your total payroll costs

are less than 75% of your total PPP expenses

Your allowed expenses

are reduced

Consider increasing

wages to eliminate

verhead reduction

Case S Study C C: Late R Reopening

60 Appendix > Case Study A, Case Study C

SLIDE 61

How much

should you pay in wages?

Case S Study C C: Late R Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

61 Appendix > Case Study A, Case Study C

SLIDE 62

The FICA

taxes (employer cost) will not be funded by PPP proceeds

Case S Study C C: Late R Reopening

Origination Date: 5/1/2020 End of 8 Weeks: 6/25/2020

62 Appendix > Case Study A, Case Study C

SLIDE 63

You no longer have a

reduction of your

verhead (rent) expenses
You still have more loan

proceeds you can spend to get max forgiveness, but you may want to hold on to those funds as working capital

Case S Study C C: Late R Reopening

63 Appendix > Case Study A, Case Study C