[RickFLM4]

Originally Posted by Yessir

It's my understanding that the loan amount is directly related to payroll only- 2019 monthly average payroll. 2019 annual payroll/12 months x 2.5. this value should give you the estimated loan amount. Nowhere on the application does it mention other expenses. The 2.5 multiplyer is so the additional funds can be used to cover other expenses outside of payroll.

https://home.treasury.gov/policy-iss...all-businesses.

All the important links and PDF's can be found in the link above. The important ones for us (borrowers) are these:

https://home.treasury.gov/system/fil...Fact-Sheet.pdf

https://www.sba.gov/document/sba-for...plication-form

And of course fill out your respective bank application online.

BTW WELLLS FARGO PORTAL IS UP

Even from one paragraph to the next, I can see where this is confusing. It seems like you can borrow and use the funds for mortgage interest, rent, payroll and utilities and it will be forgiven completely, as long as you use 75% for payroll. BUT, forgiveness determination is based solely on maintaining headcount. So you can use the funds for rent but if you reduce headcount, the loan forgiveness will be diminished. To get fully forgiven, then, it seems 75% must be used on payroll and headcount can't be reduced.

Anyone read it differently?

https://www.sba.gov/funding-programs...on-program-ppp

Loan Details and Forgiveness
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 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.