We've updated our site with some FAQs regarding Loan Forgiveness for Small Businesses with links to important information.
If you spend 100% of the funds on payroll, mortgage interest, rent, and utilities in the eight weeks after receiving the loan, lenders will forgive your PPP loan.
You can also use your loan to cover existing debt obligations, such as credit card payments,
but you will not receive loan forgiveness on those costs.
But what if your business had to close and your employees are not able to work?
Are payments to employees when they are not currently able to work (due to business being closed or for any other reason)?
The PPP was intended to keep businesses’ employees employed and paid. For the PPP loan to be forgiven, a minimum of 75% of the loan proceeds must be spent on payroll. Based on guidance provided currently, the covered 8-week period starts when the loan is funded. If a business is not open and the business’ PPP has been funded, employees will need be paid even if they are not able to work to ensure maximum forgiveness of the loan.
To read more FAQS about Loan Forgiveness for Small Businesses,