The Paycheck Protection Program provides funds to aid in payroll and utility costs, and they are forgivable so long as the funds are used for eligible expenses. These funds may be used for:
In order to qualify for loan forgiveness, companies that receive PPP disbursement must use 75% or more of the funds for payroll and are limited to using 25% of the funds for other qualified expenses. Forgivability amount decreases as headcount and salaries decrease, so employers must keep accurate and detailed documentation of expenses to ensure compliance and maximize forgivability.
If you’ve received PPP funds, take the following steps to prepare the necessary documentation and minimize the reductions in forgivability.