SBA Releases Paycheck Protection Program Loan Forgiveness Application
Businesses and other eligible organizations who have applied for and received a PPP loan will need to apply for forgiveness by completing the application and submitting it to the lender who issued the loan.
Note:
Forgiveness of a PPP loan is
not
automatic, you
will
need to apply through your lender.
In addition to the application, the SBA and Treasury also released corresponding instructions meant to assist borrowers with completing the form. According to the SBA press-release, the form and instructions include several measures meant to reduce compliance burdens and simplify the loan forgiveness application process for borrowers.
These measures include:
·
Step-by-step instructions on how to perform the calculations required to confirm eligibility for loan forgiveness
·
The option for borrowers to calculate payroll costs using an “alternative payroll covered period” that better aligns with a borrower’s regular payroll cycles
·
Flexibility to include eligible payroll and non-payroll expenses paid
or
incurred during the eight-week period following the loan disbursement
·
A process for borrowers to not have their loan forgiveness reduced when the borrower has made a good-faith, written offer to rehire a worker but that worker declines to return to work.
* read more on page 8 of the application.
·
Implementation of the FTE Reduction Safe Harbor which exempts certain borrowers from the loan forgiveness reduction based on FTE employee levels.
* read more on page 8 of the application.
The press-release also states that SBA will soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities. As soon as this guidance is published, the North Country Chamber of Commerce will distribute it promptly via our
Daily Dose E-Newsletter
and our
website.
In the meantime, we encourage borrowers to review the application and to contact their lender directly if they have any questions. Please be patient with your lender as the application was released late last week and lenders are waiting for further guidance from the SBA and Treasury Department.
- To access the PPP Loan Forgiveness Application with instructions, click here.
- For more information on the Paycheck Protection Program, click here.
- To find an SBA approved local lender, click here.