SBA PPP LOAN FORGIVENESS APPLICATION RELEASED
Over the weekend, the SBA and Treasury released the application borrowers should use to calculate their loan forgiveness eligibility and apply for loan forgiveness associated with the Paycheck Protection Program. In summary, this form and guidance:
· Instructs borrowers on how to calculate their loan forgiveness amount based on expenses during the “Covered Period” of their loan (i.e. the eight weeks following the first disbursement of the loan)
· Clarifies that expenses incurred during the “Covered Period” may also count towards a loan forgiveness total
· Defines an “Alternative Payroll Covered Period” that businesses may adopt in place of the “Covered Period”, which may be helpful for businesses with a bi-weekly payroll cycle
Please note that, according to this guidance, businesses still need to document that 75% of the forgiven amount was spent on payroll expenses.
You can find additional details in the application form and guidance. The SBA and Treasury noted in a press release that additional guidance for borrowers and lenders will follow.