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PPP Loan Forgiveness Guidance

May 22, 2020


This week, we hosted another webinar with the latest information regarding the CARES Act, SBA loans and PPP forgiveness guidance. Click below to watch the webinar recording, hosted live Thursday, May 21.

We will continue to monitor the situation and keep you updated on the impact of this bill and other regulatory changes.

Watch the Previous SBA Loan Webinars

President Trump signed the CARES (Coronavirus Aid Relief and Economic Security) Act Friday, March 27, 2020. The CARES Act provides significant relief in terms of financial assistance to nonprofits, businesses and individuals, including new and expanded Small Business Administration loans. Click here for a summary of the full act.

PPP Loan Forgiveness Application
The Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. Download the application here.

The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.

The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released Friday, March 15 will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans.

Click here to view the application and instructions.

Click here to see the press release from the SBA and Treasury.