With some necessary preparedness and a bit of luck, some U.S.
small businesses were able to obtain some financial relief last
week thanks to SBA loans through the Payroll Protection Program
("PPP"). For the 8 weeks beginning on the date when the
loan proceeds were received, businesses should use these borrowed
funds to make payroll, and pay rent (or mortgage interest) and
utilities. A main attraction of this program for borrowers is
forgiveness of the full principal amount of the loan and any
accrued interest.
Here is a list of what you "must know" and "must
do" in order to qualify for full forgiveness.
- Use the loan funds only towards (a) payroll, (b) rent (or
mortgage interest) and (c) utilities. Eligible payroll costs
include salary, wages, and tips, up to $100,000 of annualized pay
per employee (for eight weeks, a maximum of $15,385 per
individual), as well as covered benefits for employees (but not
owners), including health care expenses, retirement
