What expenses are eligible for PPP?
Eligible payroll expenses for calculating PPP loan amounts include:Compensation (salary, wages, commission, or similar compensation, cash tips, etc.)Payment for vacation, family, medical, and sick leave.Allowance for employee dismissal or separation.Payment for group health-care benefits, including insurance premiums.More items…•.
Can PPP be used for utilities?
What else can PPP funds be used for during the covered period and be forgiven? No more than 40% of PPP loan proceeds may be used for “covered” mortgage interest, utilities, rent and certain other interest payments that were established (contract in place) as of February 15, 2020.
How do I check my PPP expenses?
How to track Paycheck Protection Program funds and expensesSetup the PPP Loan Account on the Chart of Accounts. • This loan is a liability until it is determined how much of the loan will be forgiven. … Create the PPP Bank Account. • … Record the PPP Loan Income. • … Record Expenses. • … Create Reports. •
Can I apply for a second PPP loan?
Second PPP Loan Availability The HEALS PPP would allow eligible PPP borrowers to receive a second PPP loan, referred to as a “second draw.” To qualify, an entity must: Meet the SBA’s revenue size standard, if applicable; Employ not more than 300 employees; and.
How is PPP forgiveness calculated?
Potential forgiveness amounts (60% payroll requirement) This shows you the total of your payroll and non-payroll costs, minus your wage reduction amounts, then multiplied by your FTE reduction quotient. Line 9: Simply enter the PPP loan amount you received from your lender.
What utilities are covered under PPP?
The following are all considered forgivable utilities expenses for the PPP:Electricity.Water bill.Gas.Sewage.Telephone (cell phone and landline)Internet bill.Transportation costs.
Will PPP loan be forgiven?
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years.
How do I apply for a PPP loan?
Get a free PPP forgiveness consultation with a Bench expertThe 60/40 rule. At least 60% of your loan must be used for payroll costs. … Staffing requirements. You must maintain the number of employees on your payroll. … Pay requirements. You must maintain at least 75% of total salary. … Rehiring grace period.
How can I get my PPP forgiven?
How to get your PPP loan forgivenessUse it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness.