Paycheck Protection Program: What’s Next?

Many organizations that were struggling amid COVID-19 found some relief from the Small Business Administration by way of a loan via the Paycheck Protection Program (PPP). If your organization received these funds, you might be wondering, “what’s next?” With many employers nearing the final few weeks of their loan period, you may be wondering what you need to do to ensure you have the best chance of receiving loan forgiveness.

First and foremost, remember that maximum loan forgiveness is comprised of two main principles:

  • Spending the loan on the right things
  • Tracking and providing sufficient documentation

So, what can the PPP loan funds be spent on?

  • 75 percent of the funds were to be used for payroll costs
    • Salaries (remember you must maintain headcount)
    • Vacation pay
    • Medical benefits
    • Sick leave (not provided under the FFCRA/CARES Act)
  • 25 percent of the funds to be used for operating expenses
    • Mortgage interest
    • Rent
    • Utilities

*Operating Expenses are only forgivable if the mortgage/rent/utility expense was in effect prior to February 15, 2020

What documentation do you need to provide?

  • Record of the date the PPP funds were deposited in your account
  • Record of eligible expense payments (as described above)

Documents need to include:

  • Name of vendor/payee
  • Category
  • Date
  • Official record (receipt or payroll report)

What are the next steps?

  • At the end of your loan period (eights weeks from the day you received funds) total up all expenses in forgivable categories
  • Apply for forgiveness through your lender
  • IF full forgiveness is not granted, you will have a loan with the lender

Do you still have questions about the Paycheck Protection Program and how to apply for forgiveness?  Employers Council can help.  We have consultants standing by to assist your organization in compiling all the documentation needed for the loan forgiveness process. Please contact for more information.