Now that Paycheck Protection Program loans are finally flowing to our clients (and hopefully to your startup’s bank account), what are the steps you need to take to make sure you get the maximum amount of loan forgiveness possible?

We’ve created documents and spreadsheets to help our accountants and clients follow best practices managing the PPP loan funds. You can get them here:

Get our Suggested PPP Loan Forgiveness Documentation

Click on the right to visit our PPP Loan Best Practices Library, where we have:

PPP loan library items
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Our Library contains

  • A best practices list to help you keep the right documents
  • A memo you can use to memorialize your PPP loan request and document your need with your Board of Directors (make sure to get legal help)
  • A spreadsheet that you can use to consolidate your forgivable spending, including payroll, rent, utilities, etc.

We strongly suggest that you work with an accountant and lawyer to make sure your startup is following the letter (and intent!) of the law, as there have started to be some high profile instances of companies “getting into hot water” over their loans - for example, the LA Lakers. And make sure you ask your bank what materials they will require to forgive your PPP.


Remember, startups are allowed to spend the PPP loan on payroll expenses, rent expenses, utilities, 401k costs, and healthcare costs. It is important to track these costs accurately and with the appropriate documentation in order to be potentially granted forgiveness of the loan. Originally, 75% of the loan needs to go toward Payroll and the other 25% percent can go against Rent and utility expenses within the first 8 weeks of receiving the loan. However, in early June Congress passed changes to the law that let companies that already have a loan extend the forgiveness calculation period to 24 months (maximum date of December 31, 2021) AND reduces the 75% on payroll to just 60% on payroll. Note that as of the morning of June 4, the President still had to sign this law into effect.

If you don’t get yours forgiven, you still have a nice little stimulus for your business - a 1% interest rate, 2 year loan that doesn’t require a personal guarantee. The updated law, passed in early June, allows new PPP loans to be 5 years in length.

And if you didn’t get one, check out our CARES Act page to see what other stimulus options might be available for your business.

Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice or consulting a qualified law firm.

No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and Kruze Consulting, its members, employees, and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.