SBA Issues PPP Loan Forgiveness Application
On Friday, May 15, 2020, the Small Business Administration (SBA) and Treasury Department released the application for business owners to fill out in order to have their Paycheck Protection Program loans forgiven. The borrower is expected to complete the application and submit it to their bank. The bank will then have 60 days to assess forgiveness. The process can be completed electronically. The application requires that borrowers submit the forgiveness calculation and additional schedules. You can download the application by clicking on the button above.
The application includes several measures to reduce compliance burdens and simplify the process for borrowers, 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; and
- 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.
As of Tuesday, May 12, 2020, the SBA said paycheck protection lenders had distributed more than $191.3 billion, and the average loan size was about $72,296.
Please watch your email as we will sending out a presentation reviewing the application and more guidance on doing the calculation.
If you have any questions, please contact your BGM professional. We are proud to advise you and offer you and your business the support it needs. Providing our clients with the highest level of service remains our top priority.
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- SBA Issues PPP Loan Forgiveness Application
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