On Friday, May 15, 2020, the Small Business Administration, in consultation with the US Treasury, released the application and instructions for PPP loan forgiveness.
Included with the PPP Loan Forgiveness Application is a worksheet that explains how to calculate the amount of the loan that can be forgiven, summarizes eligible costs, and lists documents that borrowers must submit with the application.
- Download: PPP Loan Forgiveness Application (U.S. Treasury)
SBA will soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities, according to their press release.
The form and instructions include 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
- 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
The experts at simplicityHR by ALTRES are in the process of reviewing the documents to better understand the impact to PPP loan borrowers.
More on PPP loan forgiveness and COVID-19
This material is provided for informational purposes only. It is not intended to constitute legal advice, and reader should consult with their advisor or counsel before taking any actions based on the information contained within this material.