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Hello and welcome to JustAnswer. There is a lot of confusion out there on how to appropriately handle the PPP money. Here are the general guidlines
The Eight-Week Coverage Period:
The amount of the PPP loan eligible for forgiveness will depend on how the borrower uses the loan proceeds during the eight-week period immediately following the borrower’s receipt of the loan. The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. Thus, borrowers should be planning ahead to maximize their loan forgiveness. The lender must make the first loan disbursement no later than 10 calendar days from the date of loan approval.
The maximum amount of a PPP loan that is eligible for forgiveness is equal to the amount an employer has both incurred and spent on qualifying expenses during the eight-week coverage period, beginning on the loan origination date. Qualifying expenses include the following:
Examples of ineligible expenses include: accounts payable, including payments made to proprietorships and independent contractors; life insurance costs; principal portions of mortgage or other debt payments; and payments of interest on other debt obligations established after Feb. 15.
Conditions for Forgiveness
Based on guidance from the CARES Act and the SBA interim final rule, there are currently three factors that may impact loan forgiveness:
he amount of the Paycheck Protection Program (PPP) loan forgiveness can be up to the full principle amount of the loan, plus any accrued interest.