Do This, Not That

The do's and don'ts of using your PPP loan funds

It's important to keep it all straight. Photo by Blake Callahan/Getty

Now that you've taken the first steps toward getting your Paycheck Protection Program loan funds, Texas Citizens Bank is here to help you stay on track by sharing important do's and don'ts about how to use them.

The staff of Texas Citizens Bank, you might recall, worked overtime in April to process $97 million in PPP loans, helping nearly 500 small Houston businesses avoid layoffs or closing their doors completely.

So you would be wise to heed their advice — even the Houston SBA District Office is using these PPP guidelines to help small businesses make the most of their loans.

DO: Use the funds for payroll and authorized expenses only
Your PPP loan is to be used for payroll costs, group healthcare expenses, and other authorized costs, such as your business mortgage expenses or rent, utilities, and interest payments on other debt.

DON'T: Use the funds for other things
Make sure you use your loan only to pay for authorized expenses. You should expect to be audited by the bank or government officials. By avoiding misuse of the funds, your loan may be fully forgivable.

DO: Be organized
Keep records of how you use your loan funds. Opening and using a separate deposit account for the PPP loan funds can make this easy and streamline any auditing process. Contact a TCB banker to find out more about business deposit accounts.

DON'T: Mix loan funds with personal assets
Again, to keep things easy to track, avoid depositing your PPP loan funds into a personal account and avoid the temptation of using the funds to pay for personal expenses.

DO: Keep the rules in mind
Remember that your PPP funds need to be used immediately for authorized costs incurred during the eight weeks immediately following the loan's origination. Also, at least 75 percent of the forgiven amounts must be used for payroll expenses during that time.

DON'T: Attempt to cheat
Unscrupulous borrowers may try to take advantage of the law's gray areas, but please don't. Again, the bank or representative from the government is likely to perform an audit. The last thing you want is to be caught in an act of fraudulent use of funds.

If you would like to download these PPP loan fund do's and don'ts as a PDF checklist, you can do so here.

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Building Houston

 
 

Business and government leaders in the Houston area hope the region can become a hub for CCS activity. Photo via Getty Images

Three big businesses — Air Liquide, BASF, and Shell — have added their firepower to the effort to promote large-scale carbon capture and storage for the Houston area’s industrial ecosystem.

These companies join 11 others that in 2021 threw their support behind the initiative. Participants are evaluating how to use safe carbon capture and storage (CCS) technology at Houston-area facilities that provide energy, power generation, and advanced manufacturing for plastics, motor fuels, and packaging.

Other companies backing the CCS project are Calpine, Chevron, Dow, ExxonMobil, INEOS, Linde, LyondellBasell, Marathon Petroleum, NRG Energy, Phillips 66, and Valero.

Business and government leaders in the Houston area hope the region can become a hub for CCS activity.

“Large-scale carbon capture and storage in the Houston region will be a cornerstone for the world’s energy transition, and these companies’ efforts are crucial toward advancing CCS development to achieve broad scale commercial impact,” Charles McConnell, director of University of Houston’s Center for Carbon Management in Energy, says in a news release.

McConnell and others say CCS could help Houston and the rest of the U.S. net-zero goals while generating new jobs and protecting current jobs.

CCS involves capturing carbon dioxide from industrial activities that would otherwise be released into the atmosphere and then injecting it into deep underground geologic formations for secure and permanent storage. Carbon dioxide from industrial users in the Houston area could be stored in nearby onshore and offshore storage sites.

An analysis of U.S Department of Energy estimates shows the storage capacity along the Gulf Coast is large enough to store about 500 billion metric tons of carbon dioxide, which is equivalent to more than 130 years’ worth of industrial and power generation emissions in the United States, based on 2018 data.

“Carbon capture and storage is not a single technology, but rather a series of technologies and scientific breakthroughs that work in concert to achieve a profound outcome, one that will play a significant role in the future of energy and our planet,” says Gretchen Watkins, U.S. president of Shell. “In that spirit, it’s fitting this consortium combines CCS blueprints and ambitions to crystalize Houston’s reputation as the energy capital of the world while contributing to local and U.S. plans to help achieve net-zero emissions.”

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