Do you have to pay back the Paycheck Protection Program loan?

Yes. PPP loans (the full principal amount and any accrued interest) may be fully forgiven, meaning they do not have to be repaid. If you do not apply for forgiveness, you will have to repay the loan.

Will Paycheck Protection Program loans be forgiven?

For Borrowers Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.

What can you spend PPP loan money on?

Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan.

Can you layoff after PPP?

Can I lay off employees after the PPP covered period? If your PPP funds run out and your business has a poor financial situation after the 24-week period, then you are allowed to lay off employees. These employees will qualify for unemployment benefits.

Do you have to pay back the 20k PPP loan?

Basically, PPP loans issued before June 5, 2020, must be paid back in two years, and loans issued after that must be paid back in five years. No collateral or personal guarantees were required for the loan and no fees were charged to small businesses by the banks or credit unions providing the loans.

What can you use PPP loan for?

Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan. The second stimulus bill also introduced four new categories of expenses that are allowed.

Can you fire someone on PPP?

The Paycheck Protection Program Flexibility Act and exemptions to loan forgiveness reductions. Now, business owners will not face loan forgiveness reductions if their employees voluntarily resign, don’t accept a good faith rehiring offer, or are fired/let go with cause.