5 Things to Keep in Mind for SBA PPP Loan Forgiveness
If you received SBA PPP Loan and want to get fully forgiven here are 5 things to keep in mind.
You have 8 weeks to use funds.
At least 75% must be used for payroll costs. (Gross payroll, Medical Insurance, State Unemployment Tax)
The remaining 25% can be used for utilities, rent and business interests. (You had these obligations before February 15, 2020)
Keep the same number of employees and pay rate. If laid off there is a grace period for rehiring.
Maintain proper recordkeeping. Your bank will request several documents that must available. Here’s a list and have them ready:
Documentation verifying the number of full-time equivalent employees and their pay rates for the periods used.
Payroll reports prepared by you or your payroll provider
Payroll tax returns (Form 941)
Unemployment tax returns filed in your state
Retirement and health insurance contributions
Documents verifying your eligible interest, rent, and utility payments (canceled checks, payment receipts, statements)
Download our Loan Forgiveness Worksheet from the Tools section in our website www.vmggroup.com
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