COVID-19: PPP & EIDL Loan Information

paid or incurred

The Forgiveness Amount includes eligible payroll and non-payroll costs that are paid or incurred during the Covered Period. Eligible costs incurred during the Covered Period, but paid in the next payment cycle, can also be used in your forgiveness calculation. Incurred is the day the employee worked. Here are several examples:

Score Restaurant’s Covered Period is between April 24 and June 18, 2020. Their last weekly payroll period started on April 11 and ended on April 17, and paid on April 24. Those payroll costs are eligible for forgiveness because employees were paid (payday) on the first day of the Covered Period.

Score Restaurant’s weekly payroll for the payroll period between June 13 and June 19 and paid on June 26 is eligible for partial forgiveness for days (incurred) that were within the Covered Period.

On April 30, Score Restaurant pays the Verizon statement that covers the period from March 15 to April 15, 2020. That telephone payment is eligible for forgiveness because the invoice was paid after April 24, which is the start date of the Covered Period.

Score Restaurant prepaid the April rent payment of $1,400 on March 31. A prorate portion (7 days / 30 days * $1,400) of that payment is eligible for forgiveness because the last 7 days were incurred during the Covered Period.


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