The Small Business Administration (SBA), has recently released the Paycheck Protection Program (PPP) Loan Forgiveness Application with instructions on how borrowers can apply for forgiveness of their PPP loans, consistent with the CARES Act.
The form offers guidance on how to reduce compliance burdens and simplify the process for borrowers. These include:
- 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