MRAA reminds dealers to apply for PPP loan forgiveness if eligible

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PPP loans have been of great help to small businesses during the COVID-19 pandemic, providing companies with additional funds to pay salaries and other expenses. To further reduce the burden on small businesses, loans, if used properly, can be forgiven in full.

“We want to remind our members and other members of the maritime industry, if they are eligible, to apply for a PPP loan forgiveness,” said Chad Tokovich, Government Relations Manager of the Association of Marine Retailers of the Americas. “While PPP loans have helped inject capital into many industry businesses, forgiveness is another important aspect of the program.”

To be forgiven, 60% of the PPP loan must be spent on payroll and the remaining 40% on other eligible expenses. The Consolidated Appropriations Act 2021 (the second growth stimulus bill) expanded eligible rent, utilities, and a percentage of any mortgage payment to include:

  • Operating expenses
  • Property damage costs
  • Supplier costs
  • Employee protection costs

Time and cost are two of the most important aspects of PPP forgiveness. You should only spend the loan on eligible expenses and your forgiveness application should be completed within the specified time frame. Borrowers can apply for forgiveness after all loan proceeds for which the borrower is asking for forgiveness have been used. Borrowers can also apply for forgiveness at any time prior to the maturity date of the loan.

Resources for completing a PPP forgiveness application can be found here while apps can be found here

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