The Small Business Administration (SBA) and Department of Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application with detailed instructions on Friday, May 15, 2020.
The SBA form has instructions that include:
- The option 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 coverage period after receiving their PPP loan
- Instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30, 2020
- 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
Future legislation may impact this and other PPP-related guidance. We will continue to monitor possible updates to the PPP Loan Forgiveness Application, promptly advising you should the current contents of the application be revised or amended.
If you have questions about PPP-related matters, please connect with your PKF Texas Business Advisory team members.
Additionally, we are keeping PKFTexas.com/COVID-19 up-to-date with information and resources to assist you as we all navigate these quickly-changing times.