The Paycheck Protection Program (PPP) [macu.com] loan program was created by the CARES Act to help keep workers on payrolls. PPP loans represent more than just a helping hand for some business owners. For some, this loan is the only reason their business&;their family`s lifeline has a future.
Brittani Forbush from Mountain America Credit Union helped us understand the PPP loans and how you can get your PPP loan forgiven.
Through the Payroll Protection Program, small businesses affected by COVID-19 were eligible for a loan up to 2.5 times their eligible monthly payroll costs.
• Businesses must use a minimum of 75% of the loan for eligible payroll expenses.
• The other 25% can be used on business mortgage interest, rent, and utilities.
Mountain American recommend you properly document all of your eligible expenses and open a new account just for your PPP funds. Loan will be fully forgiven if funds are used for qualified expenses during the first eight weeks after loan is funded.
At the end of the eight weeks, businesses will submit a forgiveness application to their lender.
• From the date of submission, the lender has 60 days to review the forgiveness application and respond with either a decision or request additional information.
For more information about how you can have your PPP loan forgiven go to macu.com