PPP loan proceeds (plus accrued interest on the loan) are forgivable as long as they are expended on the following expenses incurred and paid during the eight-week period starting the day the proceeds are deposited to the borrower’s account from the lender.
1) payroll costs
2) utilities
3) rent
4) mortgage interest
However, please be advised amounts spent on these items outside of the eight-week window are not forgivable, and payroll expenditures must account for 75 percent of the loan forgiveness amount, and non-payroll costs cannot be more than 25% of the amount forgiven
Eligible payroll costs include salary, gross wages and tips, up to $100,000 of annualized per employee (or $15,385 maximum per individual), plus benefits for employees. Employee benefits include healthcare expenses, retirement contributions and state taxes imposed on employee payroll paid by the employer.
All utilities, rent and mortgage interest must be in effect as of Feb. 15, 2020.
All eligible expenses must be “incurred and paid” during the eight-week period.
The eight-week period for qualifying expenses begins on the date that the lender makes its first disbursement of PPP loan proceeds into the borrowers account. More notably, according to the new IFR on Disbursements, the lender must make a one-time, full disbursement of the loan no later than 10 calendar days from the date of loan approval.