The SBA released its Paycheck Protection Program (PPP) Loan Forgiveness Application and some much anticipated clarification for definitions and documentation requirements in its instructions. The forgiveness application is completed by the small-business borrower and is submitted to their bank or lender from whom they processed their PPP loan. The following are some highlights from the update which are intended to simplify the process and reduce certain compliance burdens:
- 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
To download the PPP Forgiveness Instructions and Application click here
GJC appreciates and values our clients. We are here to assist you as we continue to navigate these unprecedented times together. We know you may still have questions as there are still some additional areas which need clarification. We expect more guidance to be issued soon. We will continue to monitor the situation and keep you updated with new details as they are made available.
If you have any questions regarding the update or would like us to assist you with applying for a PPP loan or with your forgiveness application, please contact us today at 313-965-2655.