LEGISLATIVE ALERT
SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application
SBA, Washington - Today, 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 view the application and instructions
We are Here to Help
We are here to serve you, our valuable clients. Please reach out to your engagement team leader if you would like to discuss the various COVID-19 relief programs and how they may impact you and your business. If there's anything we can do to assist you at this time, please contact us .
Visit Our COVID-19 Resource Page

LevitZacks has a dedicated COVID-19 Resource Page with the latest resources and guidance for our clients.

From SBA resources and updates for employers and employees to federal, state and local tax and regulatory changes, you will find the latest resources available in one place.
This information has been provided for informational purposes only and not actual professional tax and/or accounting advice. Before making any decision or taking any action you should consult with your professional advisor about your specific situation.
Please contact your engagement shareholder if you have any questions.