PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS

Loans under the Paycheck Protection Program (PPP) may be forgiven if borrowers use the proceeds to maintain their payrolls and pay other specified expenses.  The specified expenses include:

  • Eligible payroll costs

    • Eligible payroll costs are limited to $100,000 for each individual employee, prorated for the covered eight-week (56-day) period. Compensation over $100,000 for each employee on a prorated basis is not eligible.

  • Eligible nonpayroll costs. Nonpayroll costs eligible for forgiveness consist of:

    • Covered mortgage interest obligations, such as payments of interest on any business mortgage obligation on real or personal property incurred before February 15, 2020, but not including any prepayment or payment of principal

    • Covered rent obligations, such as business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020

    • Covered utility payments for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020

  • Eligible nonpayroll costs cannot exceed 25% of the total forgiveness amount