The U.S. Small Business Association (SBA) has released the long-awaited Paycheck Protection Program (PPP) Loan Forgiveness Application. The form comes with instructions and is to be submitted to your lender.
Several measures have been taken with the intent to simplify the PPP loan forgiveness process and make compliance easier, 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 will soon issue more regulations and guidance to aid borrowers and lenders in the loan forgiveness process.
PPP loan forgiveness is a key component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan program was created to help small businesses pay their workers during COVID-19-related slowdowns and closures.
James Moore’s upcoming webinar will provide deeper detail about this important guidance. This webinar will be available on demand and is free to the public. In the meantime, contact your small business CPA if you have questions about the application process.
All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.