A TP received a 200,000 PPP loan.
He was supposed to spend 150,000 (75%) on payroll, but only spent 75,000. Which is 50% less than what he agreed to.
Assuming he only qualified for 50% forgiveness on payroll, does this automatically reduce rent, utility, etc forgiveness by 50%?
For example. Loan for 200,000. 150,000 payroll and 50,000 for rent, utilities, etc. He only spent 75,000 on payroll. Does what's eligible for forgiveness for rent, utilities, etc get reduced to 25,000?
I understand there are other factors to consider such as FTEE and pay reductions.