How to Make Your PPP Loan Forgivable
Millions of small businesses received loans through the Payroll Protection Program. This is the ONLY SBA loan that is 100% forgivable.
Like all things government, their are a number of rules and guidelines to follow to ensure your loan is forgivable.
Here are some key points:
At least 75% of the PPP money has to be spent on payroll costs to be forgiven
You can use up to 25% of the PPP money for items like: utilities, mortgage interest, and rent
You have 8 weeks to spend the money
Any portion of the loan that is not forgiven remains a loan at 1% interest for 2 years
If you use the money for any other purposes in the 8 weeks you can be charged with fraud
Here is a brief video interview I did with the Greensboro Chamber of Commerce. Skip to Minute 22 for my portion.
I have also created a course to help business owners fully understand how to use the money and how to track it so it will be forgivable.
Here are the details: How to Make Your PPP Loan Forgivable