The government, understandably, is expecting good accounting of borrowed COVID-19 funds during the public health emergency. How do I comply when it seems they are accepting a wide range of “COVID-19-related” expenses?
You must carefully follow the regulations as to what actions you are allowed to take to protect your residents and those who serve them. You must also document expenses for reimbursement under federal or state programs.
Your accountants should advise you what expenses are covered under the program you participated in. Your advisors also should study the specific program and establish procedures for you to follow to properly document all qualifying expenses.
Paycheck Protection Program borrowers, for instance, may be eligible for loan forgiveness if funds were used for eligible payroll costs, payments on business mortgage interest, rent or utilities during an eight- or 24-week period after disbursement.
A borrower can apply for forgiveness once the business has used all loan proceeds, any time up to the loan’s maturity date. But if PPP borrowers do not apply for forgiveness and supply payroll, mortgage or other documentation within 10 months after the last day of the covered period, then they must begin loan repayment.
Refer to www.sba.gov/ppp for a complete list of requirements and forms needed for forgiveness.
Getting advice on how each program works may help protect the seniors you serve from COVID-19, keep your employees or volunteers from contracting it and help cover your bottom line. But you must fully understand what you have to do to comply with the program, as well as what you must do to document and apply for coverage of expenses under the program.
