A Information to Getting PPP Loans – Enterprise – Pittsburg Morning Solar.


The Paycheck Protection Program provides fully forgivable loans to small businesses suffering from the coronavirus pandemic. However, seeking this forgiveness can be daunting, especially for business owners who have done so

The Paycheck Protection Program provides fully forgivable loans to small businesses suffering from the coronavirus pandemic. However, seeking this forgiveness can be daunting, especially for business owners with limited resources.

We have compiled a guide to help business owners better understand the process of obtaining PPP loans.

Requirements for the Granting of PPP Loans

Lending requirements are the same for first and second draw PPP loans. To receive full credit, you must maintain staffing and compensation levels throughout the period covered.

In addition, the money from your PPP loan must be spent on eligible expenses (see below) during the period covered. In order for your loan to be fully granted, at least 60% must be spent on labor costs.

The covered period for most loans granted in 2020 is 24 weeks after your loan is paid out. However, borrowers with loans issued prior to June 5, 2020 can opt for the original eight week period. Entrepreneurs who receive a loan for the first or second drawing in 2021 can opt for a covered period of eight to 24 weeks.

Expenses Eligible for Lending

The eligible expenses were originally limited to wage and operating costs. However, with the coronavirus relief bill passed in December 2020, the list has been expanded to include supplier costs, expenses related to health and safety improvements, and some property damage.

The following types of expenses are now eligible for PPP loan:

Labor costs: This includes all wages paid, including tips, commissions and bonuses, and employer-paid benefits such as insurance, sick leave and retirement contributions. Compensation cannot be awarded to employees who earn more than $ 100,000 per year. Operating costs: This includes utilities, business software, rent, mortgage payments, and interest and accounting services. Supplier Costs: The cost of goods necessary to run your business is eligible for forgiveness if the order or contract existed before the period covered. Orders for perishable goods placed during the Covered Period are also eligible. Property Damage: This is for repairs for damage or loss due to looting, particularly those related to public disruption in 2020. Costs that are covered by insurance are not eligible. Worker protection: This includes personal protective equipment and other costs related to health and safety requirements, such as B. Medical checkups, installing barriers, or expanding outdoor dining.

A few nuances to note: costs incurred before the Covered Period but paid during the Covered Period can be awarded. As well as costs that are incurred during the Covered Period but are paid after it has ended, provided they are paid on or before the next regular billing or billing date.

When Do You Apply for PPP Loans?

You can apply for PPP loan forgiveness as soon as you have spent the money or when your loan is due. But ideally, do this before you have to make a single payment.

PPP loan payments are deferred for 10 months after the covered period (eight to 24 weeks) has expired. You must start paying out loans if you seek forgiveness after that date.

Borrowers are not eligible for forgiveness if they apply after their loan is due. This is two years for loans taken out before June 5, 2020 and five years for loans taken out after that date.

How to Apply for PPP Loan Forgiveness

Contact your PPP lender when you are ready to ask for forgiveness. They can direct you to the correct lending form. You will need to submit this along with documentation showing how you spent your loan. Collecting this paper trail along the way will make it easier for you to ask for forgiveness. The following are the types of documentation you might need to provide.

Documentation required for PPP loan issuance

You will need to provide evidence of how you spent your PPP loan along with your loan application. Remember, only funds will be given that are spent on eligible expenses. And at least 60% of your loan must be spent on labor costs to receive full forgiveness.

Below is a list of the documents that you need to submit with your PPP loan application. Note: This list is not exhaustive and not all documents are required for all companies.

Labor costs

Third-party payrolls. State and local quarterly financial reports. State unemployment insurance documents. Bank statements Tax documents: Form 1040 Appendix C or Appendix F, Form 1065 Appendix K-1, Form 941, Form 944, Form W-2, Form W. -3 Payment receipts, canceled checks, or bank statements with details of employer's health and retirement contributions .

Other costs

Bank statements. Electricity bills that reflect payments made. Purchase orders, contracts and receipts for supplier payments. Canceled checks or receipts for covered expenses such as corporate software, protective gear, security changes, and repairs for damage sustained during the summer protests.

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Kelsey Sheehy writes for NerdWallet. Email:



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