Coronavirus (COVID-19) Resource Center > PPP > PPP FAQs


Additional funding for the PPP was signed into law. Today we wanted to answer some of the questions that customers have asked us about this program.

What can I use the PPP money for in order to have it be forgiven?

For full forgiveness the recipient (company) must use at least 75% of the funds towards payroll and the remaining 25% towards Qualified Expenses. All the money must be used within 8 weeks of receiving the disbursement from the bank.

Qualified Expenses

  • Group Health Insurance payments
  • Retirement benefits – 401Ks
  • Mortgage Interest – on physical property
  • Rent – Physical real estate, includes parking
  • Utilities – gas, water, heat. There is ambiguity if this includes the internet.

What Happens if I use my PPP funds for non-qualified expenses?

Any funds used outside of qualified expenses will have to be repaid.

For example, if 60% of the funds go towards payroll and qualified expenses that portion will be forgiven. If the remaining 40% goes towards maintenance of vehicles or to pay for other non-qualified expenses, then that 40% will have to be repaid.

Can I use my PPP to make lease payments?

This is currently an area that is not 100% clear, and any decision should be made by consulting your accountant or lawyer. While the CARES Act allows rent to be classified as a qualified expense, they have not explicitly stated that a vehicle lease qualifies.

While you can use the PPP funds as a short term loan and apply a portion of the funds to lease payments and other obligations, it is not clear if those funds will be treated as forgiven.

How long do I have to repay the PPP funds if a portion is not forgiven?

PPP loans that are not forgiven will have a 1% fixed annual interest rate and 24-month term. Interest will start accruing the day the loan is originated. Repayment start after a 6-month deferral period and continues for 18 months

Can I get PPP funds if I am an owner operator / 1099?

Yes, the PPP applies to any 1099 / owner operators. The calculation for loan amount is based upon your net income. See line 31 of your 2019 Schedule C. Visit our resource center for more information

I haven’t heard from my bank regarding the PPP loan – what should I do?

The first thing we recommend doing is to call your bank representative and ask for a status update. Many people have heard that they were approved, but the bank is waiting on the funds to be replenished. If you have not been approved, it is important to have the required documents on file, in case your bank asks for them again.

We recommend speaking with your bank at least every few days to get an update.

I haven’t applied yet, is it too late to apply?

Absolutely not – you can still apply! If you haven’t already applied, and still want to apply, we recommend doing it ASAP. The additional funds will likely run out, so securing your spot is important.

The banks have a backlog of applications that they are working through, so while there is no guarantee that everyone will get access to the PPP funds, the longer you wait to apply the more likely you will miss out on the program.

Can I apply for PPP if I already applied for an EIDL?

Yes, a business can apply for both loan programs. Keep in mind if you are looking for all of your PPP money to be forgiven, you cannot use funds from both programs for the same expenses. So if you use PPP for payroll, you cannot use EIDL money for payroll too.

It is important to consult with your accountant or lawyer regarding these programs. We are neither advocating for or against these programs, but wanted to make our customer base aware of any changes and continue to be a resource.