how to make sure your ppp loan is forgiven

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Applications for loan forgiveness are processed by your lender. You need tofill out a PPP loan forgiveness application formand submit that to your lender. After you submit your application for forgiveness, your lender is required by law to provide you with a response within 60 days.

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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.

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.

Do not use more than 25 percent of the PPP loan funds for non-payroll purposes, i.e. rent, utilities, and covered mortgage or other debt obligations. Spend the PPP loan funds within the 8-week covered period (which begins on the date you receive the funds) only on the Specific Expenses incurred within that same 8-week period. Hire back employees.

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.