May 13, 2020—Brad Mewes, founder of COVID19loans.org and an industry consultant, says PPP loan forgiveness is not automatic, according to an email newsletter.
The California-based consultant says that businesses might have to pay back the loan. The loan is not automatically forgiven if used for payroll.
Factors complicating the loan, Mewes said, include:
- You have 10 weeks of payroll but you have to spend it in 8 weeks
- There are going to be requirements for documentation
- If you're not spending the money fast enough, it will not be forgiven
And, you're currently competing with $50,000 a year unemployment if you want to hire people back.