There are 23 new FAQ's covering General Loan Forgiveness, Payroll Costs, Nonpayroll Costs and Forgiveness Reductions.
Key provisions of the document include:
Clarification that sole proprietors, independent contractors, and self-employed individuals with no employees at the time of loan application automatically qualify to use the EZ application.
Clarification on how to determine the amount of owner's compensation that is eligible for forgiveness with examples for owners of C and S corporations, Schedule C filers, general partners and LLC owners.
Clarification on the definition of "transportation utilities." These are fees assessed by state and local governments.
The SBA issued a procedural notice on July 23, 2020 stating that their PPP Forgiveness Platform will go live and begin accepting lender submissions on August 10, 2020. This is subject to extension, should any new legislation/amendments to the existing forgiveness process necessitate changes to the system. Lenders have 60 days after receiving a borrower's forgiveness application to submit their decision on forgiveness to the SBA. The SBA then has 90 days to decide and remit the forgiveness funds to the lender (thus approving, denying or modifying the lender's decision).
In addition, August 8, 2020 is slated to be the final day for applying for a PPP Loan.
If we can assist you with understanding the programs' forgiveness provisions, analyzing your loan forgiveness opportunity and application or assisting you with gathering loan forgiven information needed, please call any Sponsel CPA Group Team member or our colleagues listed below.
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.