Under the CARES Act, a borrower can get loan forgiveness of part or for the entire loan amount, subject to the eligibility of the small business owner. Let’s take a look into how to get a PPP loan forgiven. For more information check this blog post - https://www.biz2credit.com/blog/2020/04/27/how-to-get-a-ppp-loan-forgiven/

1. Copyright 2019 Biz2Credit, Confidential
Copyright 2019 Biz2Credit, Confidential
CARES Act PPP Loan Forgiveness:
Howto get?

2. Copyright 2019 Biz2Credit, Confidential
TheCARESActwaspassedinlateMarch --- ThePaycheckProtectionProgram (PPP) provides$349
billionofloanfundstohelptheSmallBusinessesintheCOVID-19pandemicperiod.In round two,
thePPPhasnow beenreplenishedwithanadditional$310billionoffunds.
2
Thebest part of thePPP loans is that upto 100percent
of the loan is forgivable. But the loan forgiveness doesn’t
applicable to all small businesses.
Inthe PPP loan forgiveness has some strict regulations
on what qualifies for loan forgiveness. Let’s take a look
into how to get a PPP loan forgiven—
Copyright 2019 Biz2Credit,Confidential

3. Copyright 2019 Biz2Credit, Confidential
3
Payroll—employees salary, wage, vacation,
parental, family, medical, or sick leave, health
benefits
Utilities—as long as service began before
February 15, 2020
Rent—as long asthelease agreement was in
effect before February 15,2020
Mortgage interest—as long as the
mortgage was signed before February 15,
2020
PPP Funds
What’s considered
forgivable?
Copyright 2019 Biz2Credit,Confidential

4. Howdo youget a PPP loan forgiven?
Submit yourforgiven application ASAP
Maintain youremployees headcounts and
salary levels
75percent of the loan must beused for payroll
costs
You’ll need to spend the balance in
eight-week period
Rehire laid-off employees by June
30
Copyright 2019 Biz2Credit,Confidential

5. Submityour forgiven application ASAP
Technically, yoursmall business can submit PPP loan application until June30. But if
youwant to secure aloan, it’s important to get yourloan application inASAP.
Copyright 2019 Biz2Credit,Confidential

6. Maintainyour employees headcountsandsalarylevels
To qualify for PPP loan forgiveness, youneed to maintain employee
headcount and salarylevels consistent with yourbusiness structure
prior to theCovid-19period
So, this is the primary condition to qualify for loan
forgiveness, make sure you keep your employees on
board—and use your PPP loan to get them paid
Copyright 2019 Biz2Credit,Confidential

7. 75 percent of theloan mustbe usedfor payroll costs
As per the currentPaycheckProtection Program
loan terms, You will haveto use 75percent of the
loan amount for employees payrollcosts. That
means in orderto qualify for forgiveness, no more
than 25percent fund can be usedon other
approved non-payrollcosts, like mortgage interest
payments or utilitybills
Copyright 2019 Biz2Credit,Confidential

8. You’llneed tospend the balance ineight-week period
Inorder to qualify for forgiveness, you’ll need to
spend the balance loan amount on forgivable
expenses over that eight-week period; any
expenses after that eight-weekperiod will not be
included in loan forgiveness.
Copyright 2019 Biz2Credit,Confidential

9. Rehire laid-off employees byJune30
If you want to get the loan forgiveness, youwill
haveto rehirelaid-off or furloughed
employees and get your employee
headcount to pre-Covid-19 pandemic
levels without suffering a penalty or
having your PPP loan forgiveness
amount impacted.
Copyright 2019 Biz2Credit,Confidential

10. Copyright 2019 Biz2Credit, Confidential
THANK YOU!
10
biz2credit.com
Call -1800-200-5678 | Email –info@biz2credit.com
More Resources-
https://www.biz2credit.com/disaster-support/cares-act-loans-coronavirus
https://www.slideshare.net/biz2credit/paycheck-protection-program-ppp-loans-and-loan-forgiveness