How to Spend Your PPP Funds (FAQ)

If you want to get your PPP loan forgiven, you’ll need to spend your funds in very specific ways. Here are our notes on some common questions we get on what a Paycheck Protection Program loan can be used for.

What can I spend my PPP funds on?
Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan.

What exactly is included in “payroll expenses”?
Payroll expenses includes the following:

gross salary or wage
gross tips
gross commissions
paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act)
allowances for dismissal or separation paid
employee benefits costs (including retirement contributions)
Can I use the PPP to pay contractors?
Unfortunately, no. Payments to anyone who is not on employee payroll, whether they’re called independent contractors, subcontractors, or 1099 contractors, are all ineligible payroll expenses.

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