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The SBA Paycheck Protection Loan Program has changed as of today, Friday, April 3, 2020.
Matt Garrett reviews the eligibility requirements, loan terms and fund allocations required for businesses who receive these PPP loans.
Businesses who receive a loan in, for example, the amount of $100K would necessarily have to allocate $75K to payroll costs. If they do not use the full amount, those businesses should immediately give back the difference between how much they use and that 75% portion of the total amount borrowed. in the case of the $100K loan, businesses can then allocate the remaining $25K (or 25% of the loan amount) to occupancy costs. If the business does not use all of that amount the remainder becomes an unforgiven loan and must be repaid within 2 years at 1% with an automatic 6 month payment deferral.
The TGG organizer for the SBA-PPP loan can be found here: https://tgg-accounting.com/qualify/ or email our team at info@tgg-accounting.com
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
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Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”
