I’m often asked by business owners if the PPP Loan is free money for me?
The answer is, it depends.
It’s either a loan you need to pay back, or free money depending upon what you do with it when you get it. There are some conditions that need to be met for your PPP Loan to be forgiven.
One condition is, you must spend at least 75% of your loan proceeds on payroll.
Additionally, the day your loan is funded, the clock starts and only the next 8 weeks count. Knowing this, you should be very strategic and pick a funding date that makes the most sense for your business.
So, my advice to you, is to call your payroll company and make sure they are providing you with the special PPP reports during your 8 week period. This way, every payroll, you can manage your spend, and make sure you’re on target to hit the 75% threshold.