Congratulations on receiving your Paycheck Protection Program (PPP) loan! We hope it provides much needed cash during these uncertain times. Now that you have the funds, here are some best practices for PPP loan forgiveness over the next 8 weeks to ensure maximum retention. Use the Funds for Forgivable Purposes Best practices for PPP loan forgiveness revolve largely on whether you use the money to pay forgivable expenses. These include: payroll costs (if you’re self-employed, these costs include the net profit amount from your business, as reported on your 2019 tax return), interest payments on mortgages incurred before 2/15/20, rent payments on leases dated before 2/15/20, and utility payments under service agreements dated before 2/15/20. However, according to the Small Business Administration (SBA), not more than 25% of...
