The Payroll Protection Program (PPP) has provided a critical lifeline to your business and your employees. The PPP loan application approval now faces a new challenge: determining how to properly spend the loan proceeds to maximize benefits under the program. Compliance is a crucial issue; as a business owner, you must adhere to rules governing the use of PPP loan proceeds, exceptionally to qualify for maximum loan forgiveness.

The PPP loan and forgiveness program’s objectives are: to create a source of funds to allow your business to keep your workforce employed and paid at a substantially similar level as before the COVID-19 crisis began. To incentivize, you need to keep their historic rank of employees and their salaries. The CARES Act allows loan forgiveness of up to 100% of the loan proceeds used for those purposes within a prescribed timeframe. If you laid-off or furloughed staff, you could rehire using the PPP funds to increase your forgiveness percentage.

Spend your PPP Funds wisely – at least 60% on payroll expenses


Below is a summary of recommendations to make appropriate PPP loan expenditures and maximize PPP loan forgiveness, based on analysis of the Cares Act and guidance from the SBA and U.S. Treasury issued to date.

  1. Rebuilding and reshaping your future company culture
    • Set your precedent for upholding the pre-COVID culture and values to managers and employees.
    • Translate your rebuilding strategies, vision, and revitalization culture to all managers and employees by communicating directly with them.
    • Be more accessible, so you are aware of issues/concerns, are being addressed and resolved effectively.
  2. Improving your business decision-making
    • Communicate with team leaders and middle managers your overall goals, and show them how to define their subtasks to support those goals.
    • Reward short-term wins and mark improvements with positive reinforcement.
    • Encourage all employees with career progression plans as critical features of your long-term business goals.
  3. Creating value and sustainability
    • Ask managers and team leaders to identify weekly recipients of your “Above and Beyond” awards consistently during virtual “All Hands” meetings.
    • Verify you have the right individuals in leadership and managerial positions supporting your vision and goals.
    • Create interim team leaders and project managers positions to drive passion, innovation, and flexibility for your vision and future growth.
    • Request volunteers for mentoring “Above and Beyond” recipients.
    • Make calls to your customers to inform them of your strategies and update them monthly on your progress.
  4. Planning for maximum forgiveness
    • Ensure that at least 60% of your PPP loan proceeds goes to compensation.
    • Keep proper records to document how you spend the funds.
    • Determine how you can easily manage, track, and report your loan’s usage.
    • Consider setting up a separate bank account to facilitate reporting.
  5. Verifying your forgiveness compliance
    When your loan is approved, you will get an email with an SBA loan number and the loan amount. When that happens, immediately identify the following numbers because you will need to know these figures to compare your actual spending.


    • 60% of the total loan amount. That is the minimum you will need to spend on payroll over the next 8 to 24 weeks to be eligible for complete forgiveness.
    • Your number of FTE employees.
    • Each employee’s average monthly salary or wage.
    • Know what allowable expenses are for the remaining 40% of your PPP loan amount.



You not only get funding to support your business through our current economic turmoil, but you can have those monies forgiven.  Yes, apply.  Now is the time to rebuild your organization with your PPP money and your pre-pandemic resources willing to continue or rejoin you.  You receive critical funds, and you avoid repaying – Win-win!

Plan! Adapt! Manage! Succeed!

AccuComp Enterprises has a track record of supporting and nurturing growth, in addition to keeping an eye on cash flow – the lifeblood of business.

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