PPP Loan Forgiveness

It sounds like it would be straightforward to have your PPP loan forgiven, but that’s like saying the tax code is straightforward. Here are details and confusion on loan forgiveness:

8 Week Period

Qualified expenses have to be paid or incurred during the 8 week period after receiving the loan. Is it incurred or paid? The statute is not clear.


At least 75% of loan proceeds need to be spent on payroll costs. The other 25% can be used for interest costs, rent, and utilities. It looks like rent of vehicles, etc. is considered rent also. What about bonuses, and do they count? Unclear also.

Full-Time Equivalent  (FTE) Calculation

The definition of FTE is not in the statute. It is still not clear if the hours of part-timers should be combined to determined full-time equivalents.

Documentation Needed for Forgiveness

You will need to provide documentation verifying FTE’s, payroll tax filings, financial statements verifying payment of debt obligations, and any other documentation the Administrator determines necessary. What exactly does the last requirement mean? I would think that it means that you better have good bookkeeping.

Are you more confused? I am sure that more guidance will be issued, but hopefully very soon.

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