PPP Loans: How Do Optometry Practices Achieve Full Forgiveness?

By Bryan Hoban, PECAA Business & Financial Advisor

Based on discussions with members, it sounds like most members who have applied have at least received PPP loan approval. This is great news! As we’ve discussed over the last few weeks, there is very little guidance on how to achieve forgiveness following the 8 week measurement period aside from the three main rules.

PPP 3 Main Rules:

  • 75% of the funds must be spent on payroll
  • FTE (full time equivalent) employee level during the 8 week measurement period must at least match that of the previous period
  • Individual employees must not have their wages decreased by greater than 25%

As soon as the SBA releases additional guidance on these rules, PECAA will pass the information along. In the meantime, diligent tracking of your expenses will help immensely when it comes time to ask your bank for loan forgiveness. PECAA has modified a tool released by the AOA and created the PECAA PPP Loan Tracker to assist.

While each bank may vary in what documentation they require, here’s what we recommend.

Documentation Recommendations:

  • Create a separate checking account that will only house PPP funds.
    • Write checks directly from the new account. Each time you write a check for an eligible expense, document the transaction in the PPP loan tracker.
    • You may also continue to use your operating checking account or company credit card to pay eligible expenses. Each time you pay an eligible expense, use the PPP account to transfer that amount back to your operating account. Document the transaction in the PPP loan tracker.
  • Save all receipts, invoices and other documentation for submission to your bank.

If you have all of your documentation in order with a clear ‘paper trail’ with your PPP account, invoices and PECAA PPP Loan Tracker, it should greatly reduce any questions or further inquiries into your forgiveness eligibility.

Not sure if you are going to achieve full forgiveness? PECAA’s accounting vendor partner, KPMG Spark, has a tool that can help with calculating how much would end up being forgivable.


Let us know at info@pecaa.com.

Download Our Ultimate Checklist for Running a Successful Optometry Practice

This checklist will help audit key areas of your practice and guide you toward sustainable, long-term success and growth.

Please complete the following form to download the ultimate checklist for running a successful optometry practice