PPP loans are designed for specific purposes, including:
- Maintaining payroll and employee salaries (excluding salaries over $100,000)
- Prevent workers from being laid off
- Support benefits including medical costs and paid sick leave
- Cover rent and utility bills
- Payment on interest for commercial mortgages
While Paycheck Protection Program loans fall under the SBA 7a heading, PPP loans cannot be used for purposes associated with typical SBA 7a loans, including commercial property transactions and business acquisitions. The Paycheck Protection Program also offers loan forgiveness which will be reduced by the number of employees laid off after receiving funds.