COVID-19: Business Implications Series — Received your CARES Act PPP loan, now what?

If you received a Paycheck Protection Program (PPP) loan, make sure you maximize its value to your business and stakeholders. Maintaining detailed records and focusing on working capital are two places to start. Here are a few best practices.
Maintain Meticulous Records
  • If possible, keep PPP funds in a separate account—creating a new account would be ideal
  • Create a spreadsheet detailing the use of funds—keep supporting receipts and backup in a separate file
  • Track as much as possible—there is still some ambiguity about loan forgiveness
Focus on Working Capital
  • Don’t focus solely on forgiveness
  • Make sound decisions based on projected working-capital needs over the next three months (or 13 weeks)
  • Run multiple “what if” scenarios to be prepared for a range of outcomes
  • Right size your business based on what you know today, not what you hope for tomorrow
  • Plan for demand and revenue to recover slowly
If you successfully completed the PPP loan application and received the good news that your loan was approved or funded, now is the time to focus on how to best use the funds to protect your business and its stakeholders. BlueWater Partners is committed to supporting you during this unprecedented time and can help you navigate the ever-changing landscape of CARES Act loans. If you have questions regarding your loan or your business’ specific situation, please email Ron Miller or Jeff Jackson.