How does the 8 week period for PPP loans work? What if we were not allowed to work during the 8 week period so we didn't pay employees. Can we now pay them and this is our 8 weeks?
May 27, 2020
The 8 week period begins the day that you receive PPP funds from your lender. That 8 week period is used to determine your eligibility for loan forgiveness. In order to qualify for loan forgiveness, 75% of your loan proceeds must be used towards payroll within the 8 week period. Failing to meet the 75% threshold will reduce the amount of your loan that is eligible for forgiveness.
If you do not pay employees within the 8 week period, the amount eligible for loan forgiveness would be reduced by 75% as non payroll expenses are limited to 25%.
Payroll payments made outside of the 8 week period are eligible if they represent work completed within the 8 week assessment period. Payroll payments for work after the 8 week assessment period would not be eligible for forgiveness.