Use the following tips on how to make sure your PPP loan is forgiven to get started:

  1. Use it for eligible expenses.
  2. Keep your employee headcount up*
  3. Don’t reduce an employee’s wages by more than 25%*
  4. Document everything.
  5. Talk with your lender.
  6. Apply for loan forgiveness.

Are PPP loans really going to be forgiven?

Most Paycheck Protection Program (“PPP”) borrowers are working toward full forgiveness of their PPP loans and are anxious to get this process started. A borrower generally may submit a loan forgiveness application any time on or before the maturity of the loan if the borrower has used all of the loan proceeds.

Will PPP loans be 100% forgiven?

The best part about PPP loans is that up to 100% of the funds can be forgiven. However, you’re going to have to play by the SBA’s rules: Forgivable expenses must be spent on eligible categories and adhere to the 60/40 rule.

When does a PPP loan qualify for 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

Which is application do I fill out for loan forgiveness?

The best answer I can give you on this is our PPP Loan Forgiveness Application decision tree. It asks several yes or no questions to get you an answer to the “Which application do I fill out?” question. 2. Regarding the Covered Period for forgiveness, why choose the shorter 8-week period instead of the longer 24-week period?

How long does it take for the PPP forgiveness application to get reviewed?

How long does it take for the PPP forgiveness application to get reviewed? What I heard from the banks we have been talking to is that the banks have approximately 60 days to filter those applications. Then the SBA has another 90 days to determine whether they are going to accept it.

How are the proceeds of a PPP loan spent?

1 Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan 2 The loan proceeds are spent on payroll costs and other eligible expenses; and 3 At least 60 percent of the proceeds are spent on payroll costs