On Friday, May 15, 2020, the U.S. Small Business Administration, along with the Department of the Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application. The form, which includes instructions, along with a list of documents that must be submitted with the application, relates to applications of forgiveness of PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Some important highlights have been added to the forgiveness process, including:
Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
More information is to follow, as the SBA states it will also issue regulations and guidance to assist borrowers in completing their applications, along with additional guidance for lenders.
Click here for more information and to view the full application.
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