SCORE to answer questions about PPP loan forgiveness

July 14 virtual conference will outline the process

WEST GOSHEN » SCORE of Chester and Delaware counties wants to help small business owners as they begin the process of applying to have portions of their Paycheck Protection Program loans forgiven.

To help small business owners better understand the process, SCORE is hosting a webinar on Tuesday, July 14 from 11 a.m. to 12:30 p.m., via the Zoom conferencing app.

Businesses that received the loans as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act can apply to have a portion of their loan converted to a grant if certain parameters are met. The legislation was passed by Congress in March and signed into law by President Donald Trump in response to the coronavirus pandemic.

Any business owners that have taken out Paycheck Protection Program loans over the past couple of months or have an application pending would benefit from the webinar, according to John Hess, chairman of SCORE Chester and Delaware counties.

“They should tune in to make sure they get that money. It would be a shame if they don’t get the loan forgiven,” he said.

The webinar will explain the application process, which includes an estimated 11-page document, Hess said, adding that the “goal posts (for the program) have definitely changed.”

The program initially required businesses to spend 75% of the loan on payroll expenses — salary, benefits and some payroll taxes.

“So, if you spent 75% of the loan amount on those items, 25% would be forgiven,” Hess said. “They changed it to 60% which allowed a lot more businesses to reach the hurdle of forgiveness.”

Another aspect of the program that changed was the time period when the money had to be spent — changed from 8 weeks to 24 weeks.

“We will talk about how do you calculate the period of time for doing the calculation, what is in the 60% and what can I use the other 40% for,” he added.

Working through the process can be confusing, Hess said. “Our goal is education. We can help business owners get through the murk,” he added.

Maria Smith, executive vice chairwoman, SCORE Chester and Delaware counties added that some business owners aren’t financial experts, and SCORE wants to help “reduce the fear level.”

The webinar will be led by SCORE volunteer and presenter Ann Angelucci, a graduate of Methodist University in Fayetteville, N.C., where she majored in business administration. She has held positions with Paychex as well as Premier Payroll Services, a Montgomery County company specializing in customer service.

Among the topics to be covered during the session are: Completing the PPP Forgiveness request; document requirements; critical calculations; and forgivable non-payroll expenses.

Described as a “working session,” Smith said participants should bring their questions so they can get clarity around about the rules, application and documentation process.

Hess added that participants will leave with the information they need to understand and fill out the loan forgiveness application.

“The PPP covered some of the costs for businesses, but not the lost revenue. They stayed afloat for the past few months,” Hess said, adding that SCORE and its mentors can help those businesses look to the future. “Talk to us, we will help you,” he said.

Participants can register for the session up until the start time on July 14, Smith said, adding that there is no limit to the number of people that can participate.

For more information or to register for the event, visit chesterdelco.score.org/ local-workshops-events. for more information about SCORE visit chesterdelco. score.org/.