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COVID-19 Relief Law - PPP Loan Forgiveness Guidance


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5/18/2020
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The Small Business Administration ("SBA") released the Paycheck Protection Program ("PPP") Loan Forgiveness Application and detailed instructions for the application.  The form and instructions inform borrowers how to apply for forgiveness of their PPP loans from the CARES Act.  

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 PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic.  The documents released today will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans.

For any questions or assistance, please contact the Attorneys at Fazzio Law, we are in your corner!

Link to the Form, here: https://www.sba.gov/sites/default/files/2020-05/3245-0407%20SBA%20Form%203508%20PPP%20Forgiveness%20Application.pdf



Category: COVID-19 Relief Law


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