Can PPP funds be used to pay vehicle loan payments ?
Thanks for coming into the QuickBooks Community, that's an excellent question that I'm happy to give you some clarification on. Based on the PPP loan model, the 8-week covered period used in the calculation of your loan forgiveness begins the date your lender disbursed the funds. So first-things-first, if you want any of your funds to be forgiven you have to spend them within the first 8-weeks. Secondly, regarding the specific use of funds on paying vehicle loans, you can use up to 25% of the funds on eligible business costs such as business mortgage interest payments, rent payments on leases and utility payments. While 75% or more has to be used on eligible payroll costs.
Please refer to this article as it has helpful information regarding the PPP loan you've recently received.
Hey I know you already got an answer to your question, but I wanted to provide you with the latest details about the Paycheck Protection Program Flexibility Act of 2020. The video below will help explain all the recent changes!
We have a designated support team that can answer your PPP concerns. And I'd like to redirect you to them to get this address right away.
Since you aren't sure if it's forgivable or not when using PPP funds to get another car, I suggest contacting our PPP support team. This way, they can provide some information on how to handle this matter. To reach them, you can go to the PPP center of your product and select Live Chat. Or, use this direct link to get in touch with the PPP Chat Support team.
In addition, feel free to visit the Microsite page to get the latest update of the PPP loan.
Please touch base with me here for all of your QuickBooks needs, I'm always happy to help.