What happens Easily Spend PPP Cash on Not authorized Expenditures?

The principles inside the access to PPP money have certain confusing brands. The fresh PPP mortgage program was created in order to get currency in order to small businesses and you can prompt men and women people to expend the fresh cash on certain costs. For individuals who invest your own PPP funds on authorized costs, having fun with 60% to possess payroll, you can have the mortgage forgiven – it’s not necessary to pay it back. When you use the cash during the a keen unauthorized way, you simply can’t feel the mortgage forgiven. New implication is you following must pay right back the borrowed funds or you to portion of the loan not used on subscribed costs. However, we wondered what the results are in the event your borrower spends the money toward unauthorized expenditures? Is there even more to help you it than simply repaying the borrowed funds? Will it matter exactly what it is allocated to, or all are unauthorized spends handled an identical?