The purpose of the Paycheck Protection Program is to keep employees on payroll (and off of unemployment). This is why keeping your employee headcount at the same level as when you applied is essential to getting your loan forgiven. Of course, keeping your employee headcount up is only part of the equation.

What does a PPP loan mean for employees?

Payment Protection Program
As part of the $2 trillion aid package unveiled in the Coronavirus Aid Relief & Economic Security (CARES) Act, $349 billion was dedicated to the Payment Protection Program (PPP). This offers federal guaranteed loans to businesses with fewer than 500 employees to cover payroll and other essential costs.

What is the maximum PPP loan forgiveness per employee?

Caps on the amount of loan forgiveness for compensation payable to owner-employees and self-employed individuals. Forgiveness is capped at 2.5 months’ worth (2.5/12) of an owner-employee or self- employed individual’s 2019 or 2020 compensation (up to a maximum $20,833 per individual in total across all businesses).

Are there any questions about the PPP loan forgiveness application?

As GrowthLab dives into everything PPP, we have fielded many questions during our weekly GrowthLab Jump sessions, office hours, and in customer meetings. Here are the top 15 questions about the PPP Loan forgiveness application process that we encountered during our live GrowthLab Jump session on Monday, June 29th.

When do you qualify for Paycheck Protection Program loan forgiveness?

Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness. First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: The loan proceeds are spent on payroll costs and other eligible expenses; and

Which is application do I fill out for loan forgiveness?

The best answer I can give you on this is our PPP Loan Forgiveness Application decision tree. It asks several yes or no questions to get you an answer to the “Which application do I fill out?” question. 2. Regarding the Covered Period for forgiveness, why choose the shorter 8-week period instead of the longer 24-week period?

When does a PPP loan need to be spent?

The loan proceeds are spent on payroll costs and other eligible expenses; and At least 60% of the proceeds are spent on payroll costs Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: