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Beyond the ease of qualifying and low interest rates, perhaps the most attractive feature of Paycheck Protection Program (PPP) loans is that they are eligible for “forgiveness.” This means that the lender can release the borrower from the obligation of repaying the balance. In other words, borrowers can get up to 2.5 times their monthly payroll costs without paying a cent. Once you’ve applied for and received a PPP loan, you must spend the loan on approved expenses for it to be eligible for forgiveness. Luckily, the loans are intended to help with payments that many business owners are struggling with right now
