PPP funds are intended primarily to cover the costs of payroll, including wages and salaries, health insurance, sick and medical leave, and vacation pay. Under the law establishing the PPP, at least 75% of the funds obtained must be used for payroll. Other permissible expenses include utilities, mortgage interest, and rent payments.
To successfully have your loan forgiven, you must provide the following minimum documentation with your application for forgiveness (your lender may require addition submissions):
The loans have a two-year repayment period, but the outstanding balance is not due until the end of that period. You will accrue interest at a rate of 1% until your loan is forgiven, so it’s in your best interests to seek forgiveness as soon as possible. There is no prepayment penalty.
At MCIS Law, PLLC, in Stafford, we provide comprehensive counsel to startup and existing businesses in southeast Texas. For a confidential consultation with an experienced and knowledgeable lawyer, email us or call our office at (346) 297-0121. We are currently communicating with clients by phone, text message, and videoconference. We accept all major credit cards.