SBA PPP loan forgiveness application now available
The Small Business Administration (SBA) recently released its Paycheck Protection Program (PPP) Loan Forgiveness Application. The forgiveness application outlines the following:
The covered period is the 56 day period beginning with the date a PPP loan is deposited to a borrower’s bank account.
- Borrowers can elect an alternate covered period for payroll costs that align with their regular payroll cycle.
- Eligible costs include costs paid during the covered period, even if incurred prior to the covered period beginning.
- Eligible costs include costs incurred during the covered period but not paid until after the covered period has ended if they are paid by:
- The next regular payroll date for payroll costs
- The next regular due date for all other eligible costs
- Only wages up to $15,384 per employee will be eligible for forgiveness
- Rent payments include rents paid for use of real or personal property.
- Step by step calculations to determine if a borrower must reduce their eligible loan forgiveness amount due to:
- A reduction in full-time equivalent employees
- A reduction in wages paid to employees making less than $100,000 per year
- Forms of documentation a borrower must submit with its forgiveness application.
The SBA has not released any narrative based guidance on loan forgiveness, similar to the guidance they have issued on other aspects of the Payroll Protection Program.
To complete the PPP Loan Forgiveness Application for your business, please click HERE.