Do you have to use all PPP loans in 8 weeks?

Should I use 8 weeks or 24 weeks for my PPP loan covered period 2021?

The answer to the question is straightforward – use the longer 24 week period if it would benefit you. The intention of creating a longer period was to help ensure that businesses would be able to have their full PPP loans forgiven.

What happens if you don’t use all of the PPP loan?

Yes, you can still receive loan forgiveness if you don’t spend all of your first or second draw PPP loan. … You may still be eligible for partial loan forgiveness, given that you can show that 60% of the forgiven portion goes towards payroll and the other 40% is used on other approved expenses.

Is it better to use 8 week or 24 week for PPP forgiveness?

You may be able to wrap up the forgiveness process earlier. If you reduce your full-time employee count or employee wages after the 8-week period, that might reduce your eligible forgiveness amounts. However, a longer, 24-week covered period gives you more time to remedy any reductions in employee count or wages.

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Can I use 100% of my PPP loan for payroll?

The 60/40 rule states that 60% of your PPP loan must be used on payroll costs, and the remaining 40% can be used on other eligible expenses (rent, mortgage interest, utilities, etc.). However, as a self-employed worker, you can claim all 100% of your PPP loan as payroll under compensation replacement.

Can I use PPP loan for personal use?

Yes, you can use your PPP loan for payroll-related expenses, including paying yourself. To qualify for loan forgiveness, individual payroll amounts cannot exceed the calculation limits, meaning you can pay yourself a maximum of $8,333/month ($100,000/year) to be eligible for forgiveness.

Do you have to use all the PPP money?

At least 60% of your PPP loan must be used for payroll costs and the remainder must only be used for qualifying non-payroll costs. Businesses have up to 24 weeks from the date you received the loan to spend the funds in a manner that is eligible for loan forgiveness.

What happens to unused PPP funds?

The Rules of Your PPP Loan

If you use the funds in an “unauthorized” way, you cannot have the loan forgiven. The implication is that you then must pay back the loan or that portion of the loan not used on authorized expenses.

What can I spend my PPP loan on as an independent contractor?

What can independent contractors spend their PPP loan on?

  • Mortgage, rent, and utility payments.
  • Interest payments on debts incurred before February 15, 2020.
  • Refinancing an EIDL loan from the SBA made between January 31, 2020 and April 3, 2020.
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