The Paycheck Protection Program was created as part of the CARES Act to provide assistance to businesses during COVID-19 through forgivable loans.

However, the program has complex forgiveness guidelines, rules, and calculations that recipients must navigate to get full loan forgiveness.

Arani's ,has developed services to better assist our clients to get proper forgiveness and help our clients to get 2nd round PPP Loans.

We had helped many of our clients in obtaining the PPP Funds and keep their records in a proper way so that all get proper credits and forgiveness.


Loan Forgiveness is the discharge or cancelation of the existing loan. This means you are not liable for the installments or interest of the loan.

PPP launched in April 2020 has seen incredible achievement bringing about a second round of subsidizing and an extension Flexibility Act to likely address the issues of American independent companies and entrepreneurs.

Requirements for PPP loan forgiveness

For a borrower to have his PPP loan forgiven the subsidies should be utilized properly, and certain conditions should be met. Complete forgiveness is dependent upon meeting all conditions, however partial forgiveness can be given and is proportional to the business compliance.

Eligible expenses:

●             Payroll

○             Gross salary

○             Paid leaves

○             Employee benefits

○             Other allowances or tips

●             Mortgage interest

●             Rent

●             Utilities

How to Apply for Loan Forgiveness

1.            Contact your PPP lender and fill the correct form

                Your lender provides SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or an equivalent form and provides guidance on how to submit the application.

3508EZ & 3508S  - shortened versions of the application for borrowers meeting actual requirements.

2.            Compile your documents

                Provide documentation of all your payroll periods which is overlapped with the Covered Period.

●             Bank account statements- document the amount of cash paid to employees

●             Tax forms- payroll tax filing reports, typically Form 941 and state quarterly business & individual employee wage reporting and unemployment insurance tax filings that will be reported

●             Canceled cheques, payment receipts, or account statements that document employer contributions to employee health insurance.

3.            Submit the form and your documentation to your PPP lender

Complete and submit your loan forgiveness application to your lender with the re­quired supporting documents.

4.            Communicate with your lender frequently throughout the process

If there are any reviews, your lender will notify you of the review decision. Your lender will notify you of the forgiveness amount paid and the date on which your first payment will be due.

How do you maximize PPP loan forgiveness?

In order to maximize, you need to use at least 60% of your payroll costs.

Work cautiously with your SBA-endorsed bank to recognize any issues with your loan forgiveness and fix those issues.

You have until June 30, 2021, to determine any issues with your headcount, payment totals, or other roadblocks to your loan forgiveness.

What can I use PPP loan funds for?

Small businesses and nonprofits with 500 or fewer workers are qualified to apply for PPP loans.

The main role of PPP loans is to assist organizations to retain their current staff. Organizations who utilize the assets to do this might be qualified for a 100% forgiveness incentive.

You can use the PPP funds for expenses like:

●             Payroll costs, including benefits

●             Interest on mortgage obligations

●             Rent

●             Utilities

Can I pay contractors using PPP Funds?

Unfortunately, no.

Payments to anyone who is not an employee, whether they’re independent contractors, subcontractors, or 1099 contractors, are all not eligible for payroll expenses.

You will normally have two alternatives. You can keep working with your SBA lender to give extra documentation to demonstrate qualification for credit absolution, or your advance will start accumulating revenue and installments will be expected. Premium will be 1% on the leftover equilibrium for a two or long-term (contingent upon when your advance was granted).