JT Goldstein continuously finds new ways to assist our business community during the COVID-19 pandemic. We listed some requirements required for loan forgiveness of The Paycheck Protection Program “PPP”, which are shown below. Please feel free to contact us for additional information on the PPP requirements. We are here to help you move forward!
PPP restricts your use of loan proceeds to the categories of expenses described below. The amount of forgiveness depends on the expenses you pay during the eight-week period after you receive your loan proceeds. Up to 100% of your PPP loan amount may be forgiven.
Permitted Expenses & Eligible for Loan Forgiveness
- Payroll costs (as defined in the Interim Final Rule) – At least 75% of loan proceeds must be used for payroll costs over the life of the PPP loan. Non-payroll costs may not exceed 25% of the forgiveness request.
- Interest on mortgage obligations (no payment or prepayment of principal) – for mortgages entered into before February 15, 2020
- Lease payments (rent) – for leases entered into before February 15, 2020
- Utility payments – for service agreements entered into before February 15, 2020
- Payments of interest on debt obligations incurred before February 15, 2020 – Not eligible for loan forgiveness
Based on current guidance, we expect that most PPP loan recipients will apply for forgiveness with sometime after the eight-week period following the disbursement of their PPP loan. You will likely be required to submit the following documentation to apply for loan forgiveness, pending more specific detail from additional SBA guidance:
- Documentation similar to what was provided to obtain the loan that supports your use of PPP loan proceeds during the eight-week period after you receive your loan proceeds.
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