A. The allowable uses of PPP loan funds are as follows:
- 75% of the PPP loan funds must be used for payroll costs for U.S. resident employees (salaries are capped at $100,000 per employee),
- The remaining 25% may be spent on:
- Costs related to the continuation of group health care benefits during periods of paid sick, medical or family leave (other than qualified family or sick leave wages for which a credit is allowed under Sections 7001 or 7003 of the Families First Coronavirus Response Act), and insurance premiums
- Payment of interest on any mortgage obligation (but not on any prepayment of principal)
- Rent
- Utilities
- Interest on any other debt incurred before Feb. 15, 2020
Read the full GT Alert: “Now That I Have My Paycheck Protection Program Money, What Can I Do with It?”