Borrowers under the Paycheck Protection Program (PPP) can qualify for partial loan forgiveness if they use less than 60% of the PPP loan for payroll, the U.S. Small Business Administration (SBA) and Treasury said Monday, June 8.
In a joint statement, SBA Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin clarified that partial loan forgiveness will be available under the 60% threshold.
Specifically, if a borrower uses less than 60% of the PPP loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60% of the loan forgiveness amount used for payroll costs. Learn more.