Q: “Does the rent paid to a landlord have to be from the period that the PPP was funded, or can it be for prior (past due rent) periods? Said another way, I have no problem paying my past due rent – that landlord is demanding – but I want it to be from the PPP funds that are forgivable. How do I do that?”

Answered by Bill Schwartz

Answer: The attached latest guidance from the SBA (see #4 at the bottom of page 12) provides that nonpayroll expenses that are paid OR incurred and paid by the next billing cycle, are both forgivable. Rent falls into that category.  So, if you missed your rent payments for February 1 and March 1, and you receive your PPP loan proceeds April 15, if you pay the February and March rents some time between April 15 and June 10 (the 8 week period after you receive the loan proceeds), those amounts are forgivable. All of this is subject to the rule that only 25% of your forgivable amount may be for nonpayroll expenses.