Apr 30, 2020 · April 30, 2020. Loan forgiveness is a key feature of the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA) pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). If PPP loan proceeds are spent in accordance with the loan forgiveness rules and guidelines, all or a substantial portion of the loan amount may be forgiven, effectively transforming PPP loans into grants.
May 13, 2020 · Currently, he is using some of his PPP loan money to pay those employees who have not gotten unemployment benefits or any other financial relief yet. As for the rest of the loan, he's trying to ...
However, to qualify for PPP loan forgiveness, you will still have to spend 75% of your loan on payroll expenses, which include employee compensation, taxes, and benefits. So, you will likely need to hire new employees if some of your old employees will not return.
Apr 15, 2020 · Alternatively, a business might consider paying 100% of an employee’s payroll costs out of the business’ existing payroll account, then reimbursing the business using the PPP loan proceeds account, to the extent of the maximum allowable payroll cost payment for that pay period.