The Small Business Administration last night released the application for forgiveness for Paycheck Protection Program (PPP) loans. This comes more than two weeks after the Congressional deadline of April 26, 2020.
You can review the 11 page application HERE .
Our team is reviewing the application in full and preparing to update our template to support PPP borrowers in preparing their application for forgiveness.
Tuesday May 19, 2020 at noon, we will host a webinar to discuss the application and answer your questions. We will also update our Forgiveness Template we have prepared and make it available after the webinar.
Register HERE to attend – space is limited. Registration will likely exceed capacity, register as soon as possible.
It appears some of the major concerns expressed by Brinker Simpson, the AICPA, and borrowers across the country have been addressed. However, many questions will still remain – we will discuss both on Tuesday.
A few of the major areas of concern addressed in the application are below (we will discuss these in detail and answer your questions):
- “Alternate ” 8 week covered period that aligns with payroll cycles
- Incorporates the exemption from forgiveness deduction for borrowers who document a good faith effort to rehire employees (we discussed this exemption in two prior webinars)
- Borrowers will be able to count any payroll and eligible non-payroll expenses incurred — but not paid — during the covered period, as long as they are paid by the next regular payroll or billing date.
- “FTE” is more clearly defined and includes an election for a “simplified method” as defined below:
- A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may be used at the election of the Borrower.
- There is an exception to forgiveness reduction for employees fired for cause.
Further guidance promised by the SBA has not been issued yet, but we hope to have it by Tuesday.
The application gives a list of documentation that will be required to support the amounts represented on the application. It also provides a list of documentation the borrowers are required to maintain but will not be required to submit. We will review these lists in detail on Tuesday & incorporate a checklist into our Forgiveness Template.
The forgivable expenses of rent and utilities have not been further clarified.
The SBA also included an optional Borrower demographic form requesting information on veteran status, gender, race, ethnicity and other categories. This disclosure is voluntary.
If you would like to submit a question in advance, there is a field to do so on the registration page.
Please contact our COVID19 response team with questions or issues at firstname.lastname@example.org.