PPP Loan Forgiveness Application Released
On May 15th The SBA and Treasury released the Paycheck Protection Forgiveness application along with new guidelines on what qualifies as forgivable. These clarifications simplify the process for borrowers and may allow more people to have the loan forgive. The clarifications include:
- Options for borrows to calculate the cost using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
- This means that if your eight-week funding period interrupts your normal pay period, there may be some opportunities to change the calculated period.
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
- Much like being able to calculate the cost using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles, you may have some opportunities to change the calculated period as it relates to the eight-week funding period for eligible expenses.
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- They now have provided instructions on performing the calculations to determine how much of your loan is forgivable.
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- You must be back to 100% of the original FTE count no later than June 30th
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that were declined
- If you had any employees who you had laid off, offered to rehire, and they declined this situation will now be considered during the loan forgiveness process.
The “To Long Didn’t Read”
The SBA and Treasury have released the PPP Loan Forgiveness Application along with new information around the loan. This information includes flexibility for the eight-week funding period for both payroll and eligible expenses, step by step instructions for forgiveness calculation, ability to rehire your staff with the PPP funding by June 30th, and new consideration for businesses who offered to rehire staff but were declined. JFS will continue to dive deeper into this update and provide more information later this week.
Remember to meet with your financial team early to ensure you have had proper reporting for your PPP funding. Do not wait until the last minute as you risk your eligibility for forgiveness.