Small Business Administration Releases PPP Loan Forgiveness Application

The Small Business Administration and Department of Treasury recently released the first detailed guidance about calculating Payroll Protection Program loan forgiveness.

The guidance comes in the form of the Paycheck Protection Program Loan Forgiveness Application, which contains:

• The PPP Loan Forgiveness Calculation Form
• PPP Schedule A
• The PPP Schedule A Worksheet
• An optional PPP Borrower Demographic Information Form.

The new guidance still may not answer every question a borrower has. But it does clarify many commonly asked questions.

A few of the major questions covered include:

• Expenses paid and incurred in the eight-week period — with certain limitations — will be allowed for forgiveness.
• The full-time equivalent has been defined as 40 hours and capped at 1 FTE. This could reduce the amount of debt forgiven per the wage/salary reduction provisions calculation and may not be considered borrower friendly.
• Covered rent obligations include leases on real and personal property.
• A new Alternative Payroll Covered Period allows borrowers to align the 56-day period with their own payroll period.

Despite the new guidance, many borrowers will likely still have questions about PPP forgiveness or need assistance with the forms and worksheets. Please reach out to your Casey Peterson, LTD financial advisor if you need help. We have developed a solution to assist you navigate some of the current uncertainty.

This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.