Quote:
Originally Posted by RickFLM4
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%. |
I would like to give you a clear answer but unfortunately, I don't have one. At this point, my concern is to get approved for the loan. I haven't read too much into the conditions and fine print of the loan as I plan to keep my business under the same structure with the same employee head count . It's a confusing mess right now but I am sure it will become more clear in the week. It is sloppy, but I thank the government and will take the assistance without question now, and figure everything else out later. I think the one thing that is clear is if you burn through all the funds you are loaned within 8 weeks, given the information for the loan and the loan amount is correct, you are free and clear- if all the funds were used toward the business and expenses.
Quote:
Originally Posted by hubbahubba
Great info, thank you!!! When I read your post I applied prior to this response. Easy peasy. Thanks again for the info!
|
Glad I could help, just learning day by day and sharing what I find.