https://www.forbes.com/sites/jaredhecht/2020/04/30/what-happens-if-you-dont-get-full-ppp-loan-forgiveness/#6cfc4679751e
Per the article......
For some businesses, that scenario—receiving, at most, partial loan forgiveness—isn’t a bad thing.
That’s because the terms of PPP loans are incredibly generous. With a 1% interest rate and loan payments deferred for six months, a PPP loan is the lowest-cost source of capital that any business could hope to obtain.
Consider the PPP loan in comparison to what was previously considered the gold standard of small business financing: The SBA’s 7(a) loan. Interest rates for the 7(a) loan are as low as the market prime rate plus 2.25%.
Granted, 7(a) loans go up to $5 million (compared to $2 million for PPP loans), can be used for a wider variety of purposes—such as expansion, renovation, and working capital needs—and have longer repayment terms. But they come with fees, often require collateral, and have more stringent requirements such as showing profitability, a good credit score, and sufficient time in business.
If the 7(a) loan was previously the best kind of loan that a business could hope for to obtain additional liquidity, the PPP supplants it—assuming you decide to use it as a loan, and not a grant. You’ll have two years to repay your PPP loan, but at a measly 1% interest, which for some may be a more useful way to utilize this loan than on payroll during an uncertain time when large portions of American life remain restricted.
Some businesses have reported feeling as though the 25% allotment for rent, utilities, and mortgage interest isn’t enough to meet their needs if they want forgiveness. New York City-area businesses, for example, pay a premium for brick-and-mortar space, and may find that using their loan for many months of rent rather than rehiring their staff right away is a more sustainable path forward.