Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan. The second stimulus bill also introduced four new categories of expenses that are allowed.

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

How do I qualify for full PPP forgiveness? You can qualify for full forgiveness if you meet these four criteria: Spend all of the funds on eligible expenses eight weeks after you receive the loan — eligible expenses include spending 60% of the loan on payroll and 40% on operating costs.

What’s the maximum amount you can get on a PPP loan?

Answer: In this case, your maximum PPP loan amount is generally equal to 2.5 times your average monthly payroll costs incurred in January and February 2020, plus the outstanding amount of any EIDL loan received between January 31, 2020, and April 3, 2020, that will be refinanced by the PPP loan.

What are the requirements for a second PPP loan?

The 25% reduction in revenue criteria only applies to businesses applying for their second draw PPP loan. This new, second PPP loan means new eligibility requirements. To apply, a business must have used up their first PPP loan, have no more than 300 employees, and show a 25% reduction in revenue from 2019 to 2020.

When to apply for loan forgiveness on a PPP loan?

If you’ve kept those requirements for the 8 (or 24) weeks after you received your PPP loan, at that point you may apply for loan forgiveness through the lender that serviced your loan.

Where can I Find my PPP loan relief?

You can find your gross receipts by looking at line 1 or 1C of your respective tax return. You can also find your gross revenue and returns and allowances by looking at your income statement. Do not include any relief received in 2020 in your gross receipts. PPP loan forgiveness starts with good books