If your business often utilizes independent contractors, it is important to remember that their wages are not covered under your payroll for PPP loan funds.
As we mentioned above, you are allowed to calculate the cost of your own salary into your PPP loan and pay yourself from these funds.
Related: PPP Forgivable Loans Will be Unforgiving for Many One of the most important stipulations of forgiveness for SBA loans is that 75% of the funds must go towards payroll if the borrower is looking to get full forgiveness.
To avoid any issues cropping up in the future, here are five strategies to keep your business safe from PPP loan blunders.
The CARES Act was a landmark, $2 trillion piece of legislation that not only provided every American with a $1,200 stimulus check and an extra $600 a week in unemployment benefits, but also put aside money for the Small Business Administration (SBA) to cover the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL).