Yes. Your PPP loan is eligible for forgiveness if 100% of the funds are used on elligible costs within the first eight weeks of receiving your loan.
It is a requirement by the SBA that 75% of the funds must be used towards covering payroll costs. Payroll includes the following:
- Salary, wage, commissions, or similar compensations
- Payment of cash tips or equivalent
- Payment for sick, vacation, parental, family, or medical leave
- Dismissal or separation allowance
- Payments for group health care benefits, including insurance premiums
- Payments for retirement benefits
- Payments of state or local tax on employee compensation
You can learn more about how to apply for PPP loan forgiveness here.