Trying to determine PPP loan forgiveness eligibility? Let us help.
Virginia Community Capital (VCC) is here to help you understand Paycheck Protection Program (PPP) loan forgiveness eligibility requirements and get the process started.
This free webinar was presented in partnership by Virginia Community Capital, the U.S. Small Business Administration, and the Small Business Development Center Network.
- Matthew Ho, Assistant Vice President, Small Business Loan Officer - Virginia Community Capital
- Carl Knoblock, District Director - Virginia Small Business Administration (SBA)
- Timm Johnson, Director - Mason Small Business Development Center (SBDC)
- Mike Austin, Access to Capital Specialist - Hampton Roads Small Business Development Center (SBDC)
How does PPP loan forgiveness work?
First, it is important to review how PPP loans can be used. Acceptable uses of PPP loan proceeds include:
- Payroll costs (as defined in the CARES Act)
- Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
- Mortgage interest payments (but not mortgage prepayments or principal payments)
- Rent payments
- Utility payments
- Interest payments on any other debt obligations that were incurred before February 15, 2020; and/or refinancing an SBA EIDL loan made between January 31, 2020, and April 3, 2020
Both nonprofit and for-profit PPP loan recipients may be eligible for loan forgiveness, including the full principal amount of the loan and any accrued interest if certain criteria are met. The amount of loan forgiveness will depend, in part, on the total amount spent over the covered period on the costs listed above. Additional guidelines can be found in VCC’s PPP Loan Forgiveness Guidelines document and on the SBA website.
Where do I start?
The SBA has issued guidance for PPP loan recipients on its website, including the application and what documentation you will need in order to prove eligibility. In addition, you can use VCC’s PPP Loan Forgiveness Checklist to accompany your SBA loan forgiveness application.
Please note: The SBA puts the onus on the Borrower to determine eligible use of proceeds, and to document them accordingly. For this reason, VCC is only able to direct the Borrower to guidelines issued by the SBA.