Integration firms receiving Paycheck Protection Program loans via the CARES Act won’t have to pay the money back as long as they adhere to the regulations. NSCA’s Chuck Wilson explains in our Tackling Tough Decisions: Logical Approaches to Cost-Cutting webinar.
“Don’t go buy a boat,” quipped NSCA Executive Director Chuck Wilson in explaining the steps integration companies need to take to avoid paying back funds received via Paycheck Protection Program loans.
It’s a little more complicated than that, of course.
During a recent NSCA webinar, Tackling Tough Decisions: Logical Approaches to Cost-Cutting, Wilson laid out the regulations that integration companies need to follow to make their CARES Act-enabled loans forgivable.
In this short clip of Tackling Tough Decisions: Logical Approaches to Cost-Cutting, Wilson discusses Paycheck Protection Program loan remittance.
Download the entire webinar here.
Tips for Handling Paycheck Protection Program Loans
During the webinar, Wilson offered advice to integrators about best practices and potential mistakes in managing cashflow related to Paycheck Protection Program loans.
- “Be mindful that this money was put into our accounts for a very specific purpose. That’s what we’re going to keep working on for the next eight weeks – helping our members understand exactly the best way they can apply that funding.”
- “75% of PPP needs to be focused on payroll.”
- “Don’t go buy a boat. Our members sometimes have a challenge understanding revenue recognition periods. [They sometimes] believe that they have more money than they actually do at certain points before they see their financials. This is going to be a classic time for that.”
- “The rules and regulations the government has put forth guide the use of this money. It’s not to be used for anything outside of the parameters of keeping people employed and the costs associated with that.”
Watch “Tackling Tough Decisions: Logical Approaches to Cost-Cutting” for more on how to retain funds from the Paycheck Protection Program and more advice for leaders who face tough decisions in the face of the COVID-19 crisis.