01 May 2020


PPP Loan Forgiveness Rules

If you’ve received a Paycheck Protection Program loan as part of the government’s COVID-19 relief plan, you should know that 100% of the loan can be forgiven if you successfully meet certain criteria.

1 – You have 8 weeks to spend the money.
This begins on the day the first payment was made by your lender.  For example, if your loan gets deposited in your bank account on May 1st, you could only use the funds on expenses incurred during the eight weeks following May 1st.

2 – You must spend at least 75% on Payroll.
75% of your loan MUST be used for payroll costs.  Any payments made to independent contractors are not eligible.

3 – You can only spend 25% on Rent, debt interest, and Utilities, which includes telephone.
The remaining 25% of your loan can be used for other expenses.

Make sure you keep all records to ensure you get the forgiveness. Call the office at 267-687-7220 if you have any questions.