Steven Mnuchin, U.S. Treasury secretary, speaks during a Coronavirus Task Force news conference at the White House in Washington, D.C., U.S., on Thursday, April 2, 2020.
Kevin Dietsch | Bloomberg | Getty Images
The Small Business Administration may forgive the loans, which are offered through SBA-approved banks, given certain stipulations. Any unforgiven portions would carry a 1% interest rate and come due within two years.
For example, to qualify, businesses must keep their workers and wages intact. Only funds used for payroll costs, rent, utilities and mortgage interest over an eight-week period can be forgiven.
The forgivable nature of the debt is one of the program’s key attractions. But business owners may owe more than they think if they don’t pay close attention to the fine print.
Those hoping to have their entire loan forgiven — by being turned into a grant — must use at least 75% of the funds for payroll costs.
That’s because only up to a quarter of the loan’s forgiven…