Thank you for your question. The most important thing is to track as much information as possible. This should be your primary concern. When it comes to the PPP loan, the more records you track, the better off your business will be when it comes to loan forgiveness. You want to make sure you separate your business revenue and PPP loan proceeds. With remote work and limited bank staff, it may be difficult to open a new bank account quickly. If you aSee More...See More...
The 8 week period begins the day that you receive PPP funds from your lender. That 8 week period is used to determine your eligibility for loan forgiveness. In order to qualify for loan forgiveness, 75% of your loan proceeds must be used towards payroll within the 8 week period. Failing to meet the 75% threshold will reduce the amount of your loan that is eligible for forgiveness. If you do not pay employees within the 8 week period, the amount eligible for See More...See More...
SBA language states that payments eligible for forgiveness include "any payment of interest on any covered mortgage obligation". It defines a "covered mortgage obligation" to include debt that "is a mortgage on real or personal property". There is no specific language stating that interest on equipment debt would be forgiven. However, many are interpreting the above definition to indicate that interest on equipment would be eligible for forgiveness as See More...See More...
An applicant cannot obtain both a 7(a) SBA loan and EIDL for the same purpose. Under the CARES act, the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for current 7(a) loans. Borrowers do not need to apply for this assistance. It will be automatically provided.See More...