July 23, 2020
Is it incurred AND paid during the period, or incurred OR paid?
Posted by Armanino Financial Advisory Team
Forgivable expenses include qualified expenses both incurred and paid in the loan Covered Period. In addition, guidance allows costs that were incurred prior to loan funding but are paid during the Covered Period to be included (“paid but not incurred in the period”). This applies to costs from the immediately contiguous period prior to funding, not to pre-existing liabilities from earlier periods. Further, costs that are incurred before the end of the Covered Period but not paid until after it ends are also eligible to be included (“incurred but not paid in the period”). However, to include any costs “incurred but not paid”, the borrower must pay those costs in the next immediate billing cycle following the end of the Covered Period and provide evidence of payment in their supporting documentation.