On May 15th the SBA issued the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions. This provides the forms borrowers need to apply for forgiveness of their PPP loans as well as the documentation lenders are required to collect from borrowers. Generally, a borrower can apply to have certain payroll and nonpayroll costs forgiven during the 8 week period following the receipt of the PPP loan.
The PPP Loan Forgiveness Application and instructions include several measures to reduce the compliance burdens and supposedly simplify the process for borrowers. For example, borrowers who have biweekly or more frequent payroll schedules are given an option to calculate payroll costs using an “alternative payroll covered period” that aligns with regular payroll cycles. Also, for nonpayroll costs, such amounts must be paid during the Covered Period OR incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.
The presentation that MWB recorded on May 11th focused on PPP forgiveness and includes several examples to help with this process.
The SBA’s press release states they will soon issue regulations and guidance to further assist borrowers as they complete their applications.
Click here for the SBA PPP Loan Forgiveness Application and instructions.
Reach out to our team at MWB for any questions you may have on anything above or ANY impact you are seeing to your business during this time.