A. The allowable uses of PPP loan funds are as follows:

  • 75% of the PPP loan funds must be used for payroll costs for U.S. resident employees (salaries are capped at $100,000 per employee),
  • The remaining 25% may be spent on:
    • Costs related to the continuation of group health care benefits during periods of paid sick, medical or family leave (other than qualified family or sick leave wages for which a credit is allowed under Sections 7001 or 7003 of the Families First Coronavirus Response Act), and insurance premiums
    • Payment of interest on any mortgage obligation (but not on any prepayment of principal)
    • Rent
    • Utilities
    • Interest on any other debt incurred before Feb. 15, 2020

Read the full GT Alert: “Now That I Have My Paycheck Protection Program Money, What Can I Do with It?”