Ceterus Support for the Payroll Protection Program

This crisis will end, and the best entrepreneurs will be ready when it does. Let us help you be that entrepreneur.
To help you manage the forgiveness calculation for your PPP loan, we have developed two offers—a full service offer and a free "do-it-yourself" toolkit (coming soon).

How Ceterus can help you manage the forgiveness calculation for your loan

From an accounting perspective, the functional aspects of a PPP loan are to book the loan as a liability and to later adjust that loan consistent with the forgiveness granted by the lender.  Additionally, accounting for the tax consequences of forgiveness must be taken into consideration upon receipt of final guidance from the IRS.

  

The forgiveness aspect of this loan is unique and complex.  Below is a summary review of what must be taken into consideration:
 

  • Analysis of historical payroll details (gross wages and hours worked)
     

  • Analysis of covered period payroll details (gross wages and hours worked) - the covered period will be selected (there are two options)

    • The costs will be evaluated based on the payment date, as well as costs incurred during the covered period and paid subsequently
       

  • Analysis of other non-cash payroll costs

    • The costs will be evaluated based on the payment date, as well as costs incurred during the covered period and paid subsequently
       

  • Analysis of non-payroll costs (rent, utilities, mortgage interest)

    • The costs will be evaluated based on the payment date, as well as costs incurred during the covered period and paid subsequently

 

After expending considerable effort to design the best options to determine forgiveness, Ceterus is literally calling a time-out.

 

  • Guidance from the SBA was late, inadequate, and confusing
     

  • Updates (in the form of FAQs and Interim Final Rules) from SBA are as likely to create rather than address uncertainty
     

  • There is widespread speculation (bordering on consensus) that guidelines will continue to change (most importantly the number of weeks to be included in the covered period)
     

Given the above, we are not in a place where we can provide reliable guidance on the forgiveness process, but we will be able to in the future. 

 

In the meantime, this is how Ceterus can assist:

 

  • Ceterus conducts weekly webinars on Wednesdays at 2:00 EDT which provide an opportunity to ask questions among fellow entrepreneurs and are proving to be highly effective.  Register for a webinar here.
     

  • For a brief personal conversation/consultation, please sign-up here.

 

We will ultimately provide a full service and do-it-yourself option for forgiveness calculation when guidelines firm up.

Full Service

The full support option includes the following services:

 

  • Financial statements modified to reflect the loan and any subsequent forgiveness granted on your balance sheet in Edge Web.
     

  • Initial consultation focused on understanding the nature of your loan, your intended use of the loan, and insight to determine all forgivable expenses during the covered period.
     

  • Focused tracking of all forgivable expenses during the applicable period.
     

  • Providing a detailed forgiveness calculation to be shared with your lender.

 

A free service that is coming soon and will provide:

 

  • Financial statements modified to reflect the loan and any subsequent forgiveness granted on your balance sheet in Edge Web.
     

  • A tool/spreadsheet for you to track your relevant expenses and substantiate a forgiveness calculation to provide to your lender.

 

Again, we are awaiting final guidelines from the Treasury Department (guidance we are comfortable won’t be revised) before making these resources available to customers.

 

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804 Meeting Street Charleston, SC 29403 | 800.571.6119

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