What are the requirements for PPP loan forgiveness?
Requirements include: Funds are allowed to be used for payroll costs, rent, utilities and interest on mortgages.
At least 60% of loan must be used for payroll costs.
While the loan is being used, employers must attempt in good faith to maintain similar levels of employment and pay that they had prior to the pandemic..
Can I apply for PPP loan forgiveness now?
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
Do you have to pay PPP loan back?
The only way you will have to pay back all or part of a PPP loan is if you don’t use it for the specific items outlined above. … Initially, no more than 25% of the forgiven amount could be used to cover non-payroll costs if you wanted your PPP loan completely forgiven.
How long does SBA have to approve PPP loan forgiveness?
In general, the lender has 60 days from receipt of a complete loan forgiveness application to issue a decision to the SBA, and the SBA, subject to its review, will remit funds within 90 days after the lender issues its decision to the SBA. The lender will notify the borrower of the loan forgiveness amount.
What is the deadline for PPP loan forgiveness?
June 30The proportion of PPP funding that must be used on payroll costs to qualify for full forgiveness drops to 60% from 75%. The application deadline for PPP loans remains June 30.
How can I get my PPP forgiven?
Use the following tips on how to make sure your PPP loan is forgiven to get started:Use it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness.
How do I get a SBA PPP loan forgiven?
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years.