PPP Forgiveness & 60% “Cliff”

The U.S. Treasury Department and the Small Business Administration further clarified on Monday that business owners who apply less than 60% of the funding toward paying their staff are still eligible for partial forgiveness of the loan.
The agencies’ clarification reassures entrepreneurs that they won’t be on the hook for the full amount borrowed if less than 60% of the proceeds goes toward payroll. Tax professionals called this a “cliff,” meaning that employers would have no forgiveness unless they met the spending requirements exactly.

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