Brad Mewes, founder of COVID19loans.org and industry consultant, says PPP loan forgiveness is not automatic.
May 13, 2020
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.
