When the PPP Loans were originally issued, businesses were given 2.5 times their average monthly payroll costs. However, they were required to use the funds within an 8-week period beginning on the date they received the loan. As things continued to get worse in the U.S., this deadline for using the funds was extended to 24 weeks.
Because of this extension, many businesses were able to use up their entire PPP loan with only payroll costs. Although they may have paid other qualifying costs (rent, utilities, etc.), payroll costs are generally much easier to document. It’s usually as simple as pulling reports from your payroll software and giving copies of your quarterly payroll tax forms. If you are using other costs such as rent and utilities, you are required to upload copies of a current lease agreement and documentation for the expenses. If your payroll records are easily accessible, it is generally much easier to use those instead.