PPP Loan Forgiveness Application Now Available, Additional Guidance
The SBA has released the Loan Forgiveness Application form and, more importantly, instructions to apply for Paycheck Protection Program (PPP) loan forgiveness.
Businesses that obtained PPP loans will use this form to calculate the forgivable portion of the loans and submit the form to their lenders.
The instructions clarify and define points relevant to the forgiveness calculation, including full-time equivalent employee and safe-harbor calculations.
Additional forgiveness guidance was issued by the U.S. Treasury and the SBA on May 22, 2020 by way of the Interim Final Rule on Loan Forgiveness, offering further clarification of alternative Covered Period calculations, owner-employee compensation calculations, when non-payroll costs must be incurred to qualify, and alternative FTE calculations.
