SBA Releases PPP Loan Forgiveness Application Form
The Small Business Administration (SBA), in consultation with the Treasury, recently released an application form for Paycheck Protection Program (PPP) loan forgiveness, as well as instructions on completing the form.
The SBA stated the form and instructions are designed to reduce compliance burdens and simplify the process for borrowers. The form includes:
- Options for borrowers who use a biweekly or more frequent payroll schedule 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 receipt of the loan. The instructions state non-payroll expenses incurred during the covered period must be paid by the next billing cycle to be included.
- Step-by-step instructions on how to perform the calculations required to confirm eligibility for loan forgiveness.
- 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 by the workers.
The SBA plans to release regulations and guidance soon to assist borrowers as they complete their loan forgiveness applications and instruct lenders on how to handle their responsibilities related to PPP loans.
Download the form and instructions here.
TSCPA is offering a Live Stream course on this topic taught by Walter Nunnallee on May 28, as well as a Webcast replay on June 8. Click the respective links to register.