The loan becomes capital once it is forgiven, expenses are all deductible as usual. It's just a matter of accounting (no pun intended) for the influx of cash. It would never be considered income whether or not it must be paid back under the current tax law for these funds.
If it were a loan you would credit your liability and debit cash, if it becomes forgiven, then it is no longer a loan it would be a debit to the liability with a credit to capital. The bills and/or salary are paid from the cash account.
Please update if you need further assistance.
@Graysonmae
[Edited: 03/02/2022 | 5:10a PST]
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