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Monday, May 18, 2020

PPP Forgiveness Application

For those who have successfully applied for and received funds from the PPP as part of the CARES Act, a PPP Forgiveness Application is required to forgive the loan.

Late last week the SBA & Treasury released the PPP Forgiveness Application along with instructions for the application. The instructions and forgiveness application are for those who have successfully applied for and received funds from the PPP as part of the CARES Act passed into law by Congress in March of this year.

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 SBA has indicated they will issue additional guidance for borrowers and lenders to understand and complete the forgiveness application. PPP Forgiveness Application.

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