The best way to ensure that your paycheck protection program loan is forgiven is byworking with a professional who fully understands the process and requirements. One missed step could have you paying back a loan you thought would be forgiven, so make sure someone who understands the process is managing the process.
People also ask
How do I qualify for 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: Employee and compensation levels are maintained; The loan proceeds are spent on payroll costs and other eligible expenses; and; At least 60% of the proceeds are spent on payroll costs
Does the CARES Act apply to PPP loan forgiveness?
When you applied for your PPP loan, you included all employees you employed鈥攆ull-time and part-time workers鈥攊n the calculation. But for loan forgiveness, the CARES Act looks at your average full-time equivalent (FTE) employees during the covered period.
What is 2nd draw PPP loan forgiveness?
Second Draw PPP Loan forgiveness terms Second 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 in the same manner as required for the First Draw PPP loan
What can I do with my PPP loan funds?
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.