Are you a small business owner who received a Paycheck Protection Program Loan/PPP Loan? I applied, recevied the PPP Loan funds, and spent the money quickly. To be eligible for loan forgiveness, keep the following requirements in mind.
Use the PPP Loan funds for paying payroll – at least 60% of the PPP Loan must be spent on payroll. This includes new and old employees.
Use the PPP Loan funds – up to 40% of the loan, on group health policies, interest payments on a mortgage, rent if the lease was in effect before February 15, 2020, Utility payments for services that began before February 15, 2020, Interest on debt existing before February 15, 2020, and refinancing a EID Loan made between January 31, 2020 and April 3, 2020.
Keep your employee headcount maintained. Avoid a Reduction in Headcount. You may have had to lay people off this year. However, you have until December 31, 2020 get your total headcount for employees as it was between February 15, 2020 and April 26, 2020 to have your headcount considered as being restored. Although the guidelines are not specific about this, you should not count 1099 staff.
Pay your employees earning less than $100,000 per year similar (within 25%) to pre-Covid-19 (as of February 15, 2020) amounts.