SS+D COVID-19 Response Team: SBA Releases PPP Forgiveness Application Form May 16, 2020
May 18, 2020 | Sebaly Shillito + Dyer
The SBA released on Friday an application form for Paycheck Protection Program (PPP) loan forgiveness. Along with the forgiveness application, the SBA offers instructions for completing the form, additional FAQs, and guidance. The PPP Loan Forgiveness Application can be found HERE.
Borrowers will complete the form and submit it to their lender. Lenders ultimately will be responsible for assessing eligibility for forgiveness. The form and instructions include several measures intended 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
- 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 forgiveness application helps address many administrative questions surrounding the PPP program, but many still are left unresolved. The SBA has indicated that it will release more guidance in the near future. We will provide a more detailed summary in a subsequent update.
ABOUT THE SS+D COVID-19 RESPONSE TEAM
The SS+D COVID-19 Response Team was formed to provide clients, colleagues, and friends of the Firm updates for the foreseeable future on COVID-19 issues facing businesses, executives, and employees. Please let us know if there are any items/issues you would like for us to track or summarize.