PPP Loan ForgivenessIf you did receive PPP funds at any time before the program expired, you may be eligible for full PPP loan forgiveness. Removing debt from your books is a great way to free up cash flow without taking on additional liabilities, so this strategy should definitely be the first place to start. Eligibility will vary based on when you received your PPP loan, which either had an eight- or 24-week period in which you had to use all the funds. You had 10 months from the day that period ended to submit your application for PPP loan forgiveness. So, if you received a loan with a 24-week usage period on May 1, 2021, you would have until August 16, 2022, to apply for loan forgiveness. Additionally, you’ll have to meet the following criteria to qualify:
- You didn’t cut staff or wages.
- You spend the loan proceeds on payroll costs and other eligible expenses.
- You spent at least 60% of the proceeds on payroll.