What can PPP loan be used for?

Asked by: Mavis Von  |  Last update: February 14, 2026
Score: 4.3/5 (22 votes)

First Draw PPP loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for ...

Can a PPP loan be used for anything?

Small Business Paycheck Protection Program

Funds can also be used to pay interest on mortgages, rent, and utilities. The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $659 billion toward job retention and certain other expenses.

How do you know if your PPP loan is being investigated?

Generally, if you are flagged for PPP fraud, you will be contacted by a federal agent from a law enforcement agency or other federal authorities regarding your loan under the CARES Act. Your bank might also inform you that your bank accounts have been frozen or seized as part of investigations into PPP Loan fraud.

How do I spend my PPP money?

What can the money be used for? PIP helps meet the extra costs associated with living with a disability or a long term health condition, including: higher heating bills. special diets, clothing or equipment.

Do people have to pay back PPP?

For Borrowers

Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.

Lay Off My Staff or Take The PPP Loan?

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What are the rules for the PPP loan?

Loan details
  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5, 2020, have a maturity of two years. ...
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. ...
  • No collateral or personal guarantees are required.

What can I spend my PIP money on for mental health?

  • Paying for residential care.
  • Paying for social care.
  • Getting support for your mental health?
  • Paying for prescriptions.
  • Paying for private treatment and therapy.
  • Managing your money if you go into hospital.

How do I start paying back my PPP loan?

View loan balance and make payments

Create an account in the MySBA Loan Portal (lending.sba.gov) to monitor your PPP loan status. Payments can only be made using the MySBA Loan Portal for SBA-purchased PPP loans. All others can continue to set up and manage online payments at Pay.gov.

How should the PPP loan be spent?

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.

Will a 20k PPP loan be audited?

Who will be audited? PPP loans in excess of $2 million are automatically triggered for an audit by the SBA. The SBA has created a safe harbor for any PPP loan borrower that, together with its affiliates, received loans of less than $2 million.

What are red flags for PPP?

Unexpected Contact: Be cautious of unsolicited calls or emails claiming missed court dates or urgent issues regarding your PPP loan. Threats of Legal Action: Any communication threatening jail time or legal repercussions for immediate payment should raise red flags.

Can PPP loans be tracked?

PPP loan proceeds to the company payroll bank account, or operating bank account, to cover the allowable costs. This will allow the business to track the funds that must be spent over the 8 week period.

Can I find out if someone received a PPP loan?

Search for a borrower, or if you want to see how many people received loans in your state and other interesting facts, check out our PPP dashboard.

What is the maximum PPP loan amount?

The term of the loan (maturity date) is two (2) years from the date of loan origination. How much can I borrow? The maximum loan amount is 2.5 times the average total monthly payroll costs incurred in the one-year period before the loan origination date, or $10 million, whichever is smaller.

How to get a PPP loan without a business?

Who is eligible to apply for a self-employed PPP loan?
  1. Must be in operation before February 15, 2020.
  2. Must have income from self-employment, sole proprietorship, or as an independent contractor.
  3. Must live in the United States.
  4. Must file a Form 1040, Schedule C for 2019.
  5. Must have net profit for 2019.

Do people who got PPP loans have to pay them back?

PPP loans (the full principal amount and any accrued interest) may be fully forgiven, meaning they do not have to be repaid. If you do not apply for forgiveness, you will have to repay the loan.

How long does PPP last?

Without treatment, PPP generally do not ever go away on their own. At best, they may seem to fade a bit over the years. That is why we highly recommend treatment as soon as you notice symptoms. By removing any PPP, you can avoid the negative effects it can have on your sex life right away.

What happens if you can't pay back your PPP loan?

The SBA can: (1) report the status of the loan(s) to credit bureaus, (2) hire a collection agency to collect the loan, (3) offset income tax refunds or other amounts due to the borrower from the Federal Government, (4) suspend or debar you or your company from doing business with the Federal Government, or (5) refer ...

What freebies do you get with PIP?

When you get your PIP award letter, you can apply for a:
  • Disabled Person's Railcard - up to a third off most rail fare.
  • Blue Badge in England and Wales.
  • vehicle tax discount of 50% - if you get the standard PIP mobility rate.
  • vehicle tax discount of 100% - if you get the enhanced PIP mobility rate.

What mental illnesses can you get paid for?

Someone who has bipolar disorder, major depressive disorder, or another mental illness that prevents them from working or maintaining employment may qualify for disability pay. Learn more about this benefit, as well as mental health disability payment programs you or someone you love may qualify to receive.

What should disability money be spent on?

If that happens, your payee must spend the money on your current needs such as rent and a security deposit, food or furnishing. The rest of the money can be used to pay for medical services, your education, improvements to your home or your debts.

Can a PPP loan be used for owner salary?

Use of PPP Loan Proceeds

PPP loan amounts can be used for “owner compensation replacement,” calculated based on the 2019 net profit and the other allowable uses listed in the CARES Act (e.g., employee payroll costs, and certain business expenses).

Will PPP loans under $150,000 be audited?

The SBA PPP Loan funds have been replenished recently and are currently being disbursed among many small businesses throughout the U.S. Recently, Treasury Secretary Steven Mnuchin announced that all SBA PPP Loans of over $2 million will be subject to an audit.

What is the difference between a PPP loan and a SBA loan?

While PPP loans were designed as a temporary and short-term relief from the economic decline due to the pandemic, SBA loans were created as a long-term financing solution. They have a more extended repayment or maturity term that can be up to 25 years, depending on the borrower's business sector.