PPP Loan Forgiveness Application Released
May 18, 2020
On Friday, May 15, the U.S. Department of the Treasury and U.S. Small Business Administration (SBA) announced that is has released the Paycheck Protection Program (PPP) Loan Forgiveness Application that contains detailed application instructions.
To apply for forgiveness of a PPP loan, borrowers must complete the application and submit it to their lender. The form and instructions contain several measures aimed at reducing compliance burdens and simplifying the process for borrowers, including:
- 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;
- 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;
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30; and
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.