People also ask
How to get PPP loan forgiveness for employees?
How to get PPP loan forgiveness. 1 Use it for eligible expenses. 2 Keep your employee headcount up*. 3 Don鈥檛 reduce an employee鈥檚 wages by more than 25%*. 4 Document everything. 5 Talk with your lender. 6 Apply for loan forgiveness.
What are the terms of first draw PPP loan forgiveness?
First Draw PPP Loan forgiveness terms. First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: Employee and compensation levels are maintained. The loan proceeds are spent on payroll costs and other eligible expenses; and.
Can I use my PPP loan for specific expenses?
Although you can use PPP loan funds for Specific Expenses after the 8-week period and before June 30, 2020, that portion of the loan will not be forgiven and you will need to repay that portion of the loan within 2 years of the date you received the PPP loan, at 1% interest. What Reduces the Amount of Forgiveness?
How much of a loan is forgiven from payroll?
This is 75% of the minimum payroll cost required for full forgiveness so their forgiveness amount is 75% of the loan. This means $15,000 of the $20,000 loan is forgiven, and they have to pay back the remaining $5,000. You can also find your maximum forgiveness amount from your payroll costs.