Can I use PPP loan to buy a car for business?

No, the PPP cannot be used to pay outstanding business, corporate, or property taxes. However, PPP funds can be used to cover state and local payroll taxes that you (the employer) have to pay over the loan period.

Can I use PPP loan to buy a work truck?

Truckers can apply for the PPP loan just as any other business owner or independent contractor would. You’ll need to fill out the PPP loan application with an approved SBA 7(a) lender.

Can PPP be used for business expenses?

In addition to making many business expenses eligible for forgiveness, the PPP loan is primarily intended to help business owners keep employees on payroll. And, what qualifies as payroll during the forgiveness period following the loan is broader than you might think.

Are vehicle leases forgivable under PPP?

It is important to note that the application guidance includes “lease agreements for real or personal property” in the definition of eligible rent expenses, so expenses associated with personal property leases, i.e. equipment and vehicles, in force as of February 15, 2020 can be included as eligible costs for PPP

Can I use my PPP loan for anything?

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.

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What qualifies for PPP forgiveness?

For Borrowers

Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.

What documents are needed for PPP loan forgiveness?

How to Get Your PPP Loan Forgiven

  • Name of your business: business legal name, DBA, trade name (if applicable)
  • Business Tax Identification Number (TIN): Social Security number (SSN) or Employer Identification Number (EIN)
  • SBA loan number.
  • Your PPP loan amount.
  • EIDL advance amount (if you got one)

What business expenses can PPP loans pay?

Paycheck Protection Program (PPP) loans are eligible for forgiveness if the business uses the funds to pay for eligible items such as payroll, certain employee health care costs, interest on mortgage obligations, rent, and utility expenditures.

What is considered rent for PPP?

What qualifies as rent. In our interpretation of the official Treasury guidance, we consider rent expenses to be any amount that is paid in a periodic manner, in order to use property for business purposes. These expenses must be a result of a signed agreement from before February 15, 2020.

Can you go to jail for PPP loan?

Depending on the size of the PPP loan, this can result in a $5,000,000 fine and up to 10 years in prison. 18 U.S.C. § 1343: Wire Fraud. This can result in fines and up to 20 years in prison.

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