Many small business owners still have questions about both obtaining the PPP and EIDL loans as well as how the forgiveness works. A good start in answering your questions is to look at the Treasury guidance issued May 5 and then talk to your banker.
The following are the top 10 most frequently asked questions about loan forgiveness starting with the most pressing one about borrower liability. These questions have been answered in a recent article published by Forbes. Follow the link below to find all the answers.
1. What is my liability exposure around the loans and forgiveness?
2. When do I have to start tracking the use of the PPP funds?
3. Do I have to use at least 75% of the PPP loan on payroll?
4. If I laid off workers, do I need to rehire the same employees to meet the payroll requirement?
5. Do I need to hire the same position or keep employees in the same jobs?
6. What if I’m still nervous and want to give my loan back?
7. What if I don’t use the funds for payroll or rent, utilities, or interest payments?
8. What documentation should I use with my lender to show the money was spent according to the regulations?
9. When can I apply for forgiveness?
10. What is the status of the EIDL loan program?