What the results are If i Invest PPP Money on Unauthorized Costs?

The guidelines within the access to PPP fund incorporate particular confusing names. The brand new PPP loan system was made as a way to rating currency in order to smaller businesses and you can encourage those enterprises to pay the fresh cash on specific costs. For many who spend your own PPP money on authorized expenses, having fun with 60% having payroll, you can get the borrowed funds forgiven – you don’t need to repay it. When you use the amount of money inside an enthusiastic unauthorized way, you simply cannot feel the mortgage forgiven. New implication is you upcoming need to pay back the mortgage or you to portion of the financing perhaps not used on licensed expenses. However, we pondered what happens in the event the debtor uses the money towards unauthorized costs? Could there be significantly more to help you they than paying off the borrowed funds? Will it matter just what it is used on, otherwise are typical unauthorized uses managed an identical? Read the rest of this entry »