If I am fortunate enough to get funding, can I use the 25% to pay monthly loan payments for my trucks and equipment?
1 reply
Apr 24, 2020
If you're referring to funding under the SBA Paycheck Protection Program, then that funding should primarily used for payroll costs like benefits and salaries. However, some other costs are acceptable too - like mortgage payments or rent, utilities, and other debts that were incurred before the loan. If the loan is spent on other items, then it may not be forgivable. As you seem to have mentioned above, non-payroll expenses are limited to 25% of the forgivable amount.
As for SBA Express Bridge Loans, those loan proceeds must be used to support the survival and/or reopening of the business. So, presumably, paying for necessary equipment should be acceptable.
Finally, I think these resources might be useful to you, as well:
- Small Business Loans For Construction During Coronavirus | Who qualifies & how to apply- What is the full scope of ‘Payroll Costs’ as termed in the PPP loan?- SBA Paycheck Protection Loans: Loan & Forgiveness Calculator