MAY 16, 2020
SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application
Last night, the Small Business Administration (SBA), in consultation with the Department of the Treasury , released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.

The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.

The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • 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
  • The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released today will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans.

Click here to download the PPP loan forgiveness application and instructions.
House Passes HEROES Act, Uncertain Future In Senate

Yesterday, the House passed a Phase 4 response to the COVID-19 pandemic. The measure was approved by a vote of 208-199. Fourteen Democrats crossed party lines to vote against it and one Republican voted in favor. Republicans have made clear that it is "dead on arrival" in the GOP-controlled Senate.

Dubbed the HEROES Act, the measure has provisions that are very important to the restaurant industry (including our approach to improving the PPP program), and provisions that will be more challenging for restaurants (extension of enhanced unemployment, extension of emergency paid-sick leave/FMLA). 

The IRA and National Restaurant Association are still pressing Treasury and SBA to make necessary changes to PPP rules to make the program work for restaurants.

Click here to read a breakdown of the HEROES Act and the implications for restaurants.

Click here to read more from CNN.
Please  visit our website  for the latest COVID-19 updates, in addition to the above resources and information for your business. Updated as of 10:45 a.m. on Saturday, May 16.