SBA, Treasury Release PPP Loan Forgiveness Application
The Small Business Administration (SBA) and the Treasury Department released the Paycheck Protection Program (PPP) Loan Forgiveness Application as well as detailed instructions for completing the application.
According to a press release from the Treasury Department, the application form and instructions provide information to PPP borrowers regarding how to apply for forgiveness of their PPP loans. Treasury added that the SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
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
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