The COVID-19 pandemic has been a tumultuous time for childcare centers. Many childcare centers have been forced to close or were required to operate at a lower capacity, both which have significantly impacted revenue. Fortunately, the CARES Act offered Payroll Protection Program (PPP) loans for financial support. If you applied and received the PPP loan money, you now must properly budget to ensure that your loan is forgiven. Kangarootime has created a tool for childcare centers to budget and forecast how much of their loan will be forgiven.
There are many requirements small businesses must follow in order to have their PPP loan forgiven. This process entails an 11-page application to the bank or lender that approved the initial loan request. For insight on how to complete the application process, check out this informative Kangarootime webinar presented by Shira Leibowitz.
To help your center budget your PPP loan and loan forgiveness, Kangarootime has created a helpful PPP Burndown Tool. This tool will help you calculate how quickly you will “burn” through your loan based on your payroll, mortgage, and utility expenditures. It will also help you understand loan forgiveness reductions and how to account for them.
By having a clear understanding of your loan amount and how to allocate it, you are setting your center up for success.
For an informational video on how to use the tool, click here.
To download the tool for free, fill out the form below.