Paycheck Protection Program Loan Forgiveness Application Released

*Also read our most recent update: SBA Releases Guidance Regarding SBA Loan Review Procedures and Responsibilities of Borrowers and Lenders

The application and detailed instructions and worksheet detail how borrower and lenders will document forgiveness of a PPP loan. The SBA will issue additional regulations and guidance to assist borrowers in completing the application and to provide lenders with guidance on their responsibilities.

Key highlights include:

• Borrowers have an option 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 8-week covered period after receiving a PPP loan.
• Specific instructions on the calculation required to achieve loan forgiveness.
• Implements the statutory exemption from loan forgiveness reduction based on rehiring by June 30th.
• Confirms a new exemption from loan forgiveness reductions for borrowers who have made a good-faith, written offer to rehire workers that was declined.
• Confirms a per employee compensation cap of $15,385 during the 8-week period.
• Requires borrowers and affiliates, if any, to confirm receipt of original loan proceeds in excess of $2.0m.
• Identifies the documentation required to be submitted with the application.
• Includes 7 additional certifications required to be made by borrowers.

Please reach out to us for the latest guidance, and see the PPP Loan Forgiveness Application and Instructions.

A printable version of this information can be found by clicking HERE.