what is loan forgiveness ppp

Best answer


Paycheck Protection Program

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  • Are you eligible for PPP loan forgiveness?

  • Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness. 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: The loan proceeds are spent on payroll costs and other eligible expenses; and

  • 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.

  • 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.

  • What happens if my PPP loan is denied?

  • If you鈥檝e made a good-faith, written offer to rehire someone and this offer ended up being denied; you may be eligible for an exemption from PPP loan forgiveness reduction. The initial deadline to send in a PPP loan forgiveness application form is ten months from the conclusion of the Covered Period 鈥?which is somewhere between 8 and 24 weeks.

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