What are eligible utility costs?

Eligible costs include electricity, gas, heating oil, water, telephone, internet, and transportation costs where service began before February 15, 2020.

Can bills already paid at the end of March and April for utilities count for forgiveness or just ones accrued in the 8 weeks of the loan?

If you already paid the bill before you received the loan, it is not an eligible expense. However, if you have an unpaid bill from after February 15, 2020 and utilize the loan proceeds to pay it, that is permissible so long as that bill is for an eligible expense (payroll, rent, utilities, etc.)

We test our water on a monthly basis. Does that fall under water utilities?

No, just the water bill itself.

How does a utility expense qualify when the period goes from 4/15-5/15 – does it qualify, does not, or can be prorated when paid in May?

The regulation allows for utility costs that are incurred or paid during the covered period. Therefore, the entire bill can be paid using loan proceeds