Accounting for Paycheck Protection Program Loans [United States Users]

Accounting for Paycheck Protection Program Loans [United States Users]

Not sure how many users are based in the US, but this one-time federal program offers a loan which will be forgiven(essentially turned into a grant) if the business meets criteria of maintaining staffing for 8 weeks and will reimburse payroll and certain expenses.  

I was thinking there are two ways to track these expenses and the loan itself - tags, and projects. 

Right now I'm thinking that a project makes the most sense.  It would have a budget (loan amount) which equals the retainer (funding amount), customer (bank/lender), expenses (rent, payroll, etc) and a defined period of execution.  As I track bills and payroll, I would simply apply them to the project.  At the end of the period, if i had funds left over they would remit to the customer (bank) or if I expensed more than the budget, well that is my cost.

I have no experience with project accounting. Am I on the right track?  Is there a issue that renders this idea a bad fit?  Essentially I'd like to account for all of the funding received and apply it only to authorized expenditures.  It really shouldn't be treating this funding as income but if the goal is to have expenses > or = funding(retainer) does it matter?

Really a question for accountants but sometimes my accountants aren't up to speed on what is available through zoho so I turn to the community on this.
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