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SE MN | It is a loan written through your bank guaranteed by the SBA on a 5 year term at 1% interest. It will most likely be forgiven by the SBA. It is meant to replace 2.5 months of wages.
The loan amount is based off line 9 of your Sch F. Assuming you have no other employees the SBA says you are the employee of your business. $100,000 is the max wages per employee so you take your line 9 and divide by 12 months then multiply by 2.5 for the loan amount. For most it will be $20,833. At least 60% of loan proceeds must be spent on payroll, which seems to mean you write yourself a check. Once the funds have been spent on eligible purposes you can file for forgiveness. | |
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PPP loan for dummies
