What can PPP funds be used for?

You can use your loan proceeds to pay your expenses—payroll, rent, utilities, and mortgage interest. These are the expenses that, according to the CARES Act, will be forgiven by the SBA. In addition, there are other “eligible” uses of your PPP loan which, while allowed, will not be forgiven.

Can I use PPP loan for other expenses?

Your PPP loan funds can be used to cover payroll expenses so that you can keep your business staffed. Remember, you must use at least 60% of your loan to cover payroll costs to qualify for forgiveness. The remaining 40% can be used on other qualifying expenses.

What can you not do with a PPP loan?

Don’t: Spend your PPP money on ineligible expenses

That means using the bulk of your funds (at least 60%) on payroll costs, such as salaries, hourly wages, paid sick leave and group insurance benefits.

What can you use the PPP loan for to be forgiven?

Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.