Got a PPP Loan? Here's Why You Won't Be Eligible for Full Forgiveness
The concept of financial assistance for small businesses is nothing new, but during the COVID-19 crisis, the need for aid has been much greater than usual. With the economy stuck in a recession and pandemic-related closures hurting local establishments left and right, it was clear to lawmakers that small businesses would need a substantial amount of help to make it through 2020 without running the risk of having to close permanently.
That help came in the form of the Paycheck Protection Program, or PPP. Under the PPP, companies with up to 500 employees on staff could qualify for a loan equal to two-and-a-half times their monthly payroll costs. The best part? PPP loans are completely forgivable provided that at least 60% of their proceeds are used for payroll expenses.
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Source Fool.com
