PPP Loan Forgiveness Application
The Small Business Administration (SBA) just released the Paycheck Protection Program (PPP) Loan Forgiveness Application. Included are instructions that provide welcome guidance on timing and expenses that can be included, calculation worksheets, and documentation requirements for forgiveness. The application also includes:
- Clarification of the Covered Period dates explaining the first day of the Covered Period must the same as the PPP Loan Disbursement date. For example, if the Borrower received its PPP loan proceeds on April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14;
- Alternative Payroll Covered Period which allows flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after businesses get their PPP loan;
- Step-by-step instructions on how to do the calculations required by the CARES Act to confirm eligibility for loan forgiveness;
- A new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined (FTE Reduction Exception).
Of course, as in the application process, your lender may ask for additional information. A link to the Loan Forgiveness Application is below.
Bland Garvey is available upon request to assist.