How to Track Your Finances After Filing for a PPP Loan


Now that you’ve wrapped up your Paycheck Protection Program (PPP) loan application, it’s time to move on to the next step. As you likely noticed, there is a precise list of approved uses for your government-granted funds, so you and your business must keep detailed records of your expenses to avoid needing to pay it all back. 


Approved Uses for the PPP Loan Funds


As you get ready to spend your newfound funds, it’s crucial that you utilize them exclusively for approved uses. To make sure you don’t accidentally misuse the money from your PPP loan, we’ve listed out the core spending options for your business:

Payroll Costs

  • Salary, wages, commission, or similar forms of compensation

  • Paid vacation, parental, family, medical, or sick leave

  • Allowance for dismissal or separation

  • Healthcare benefits (including insurance premiums)

  • Retirement benefits

  • State or local taxes assessed on the compensation of employees

Other Business Costs

  • Interest on any mortgage obligation (excluding prepayment or payment of principal on a mortgage)

  • Rent

  • Utilities

  • Interest on any other debt obligations that were incurred before February 15, 2020

Despite being lumped into only 2 categories, the ways you can safely spend your Paycheck Protection Program (PPP) loan are incredibly diverse, so it’s important to keep them lined out. Additionally, if you also applied for the Economic Injury Disaster Loans (EIDL) and related Emergency Economic Injury Grant (EEIG), you need to be extra careful. Any crossover in fund use could result in you losing out on the chance for total loan forgiveness. As scary as that scenario sounds, there’s a pretty spectacular solution, and it won’t cost you a thing. 


This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. ABC Compliant assumes no liability for any actions taken in reliance upon the information contained herein.

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