What is considered qualifying spending of the PPP loan for self employed to get loan forgiveness?

I see the self employed can qualify for the PPP loan but to qualify for forgiveness u must spend 75% on payroll. So what is considered qualifying spending for the self employed to get 100% forgiveness? 

Message 1 of 4

Hey @Hollyy-


Thanks for posting in the Seller Community.


That's a fantastic question. I would encourage you to take a look at this doc directly from the SBA regarding eligibility and forgiveness conditions.


Our team is also working on breaking these rules into straightforward guidelines, we'll be sure to provide an update when we have a more definitive answer. Thanks again for posting! 



Olive, she/her

Seller Community Manager, Square

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Message 2 of 4

Hi, was just wondering if anyone could give some insight as to how to spend or calculate the way funds should be spent for the PPP. I understand the 75% on payroll, but my question is a little more in depth. How should we pay our employees? Is it based on their hours as of now, during the quarantine? Or do we pay them the average amount of what they earned before the virus hit. Will we still get forgiveness if we pay them what they used to make v/s how much they are making now? I’m trying to give all my employees what they made previously before the virus. Just wondering if that would qualify for forgiveness. Also, if that isn’t allowed, how would you calculate the hours of the employees you don’t need? I’ve seen information that if you don’t need your employees that you should still pay them while they are at home. That’s fine but how would their wages be calculated IF you can’t use the pre-virus average of their pay. Thanks in advance for any help, hope this doesn’t confuse anyone and is as straightforward as I meant it to be. 

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Message 3 of 4
Square Community Moderator

Hi @raymondtyler,


I moved your post to an existing thread where another seller had the same question.


Check out @Olive_ 's link she provided above in her Best Answer.

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
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