Released PPP Loan Forgiveness Application
On May 15, Small Business Administration released the Paycheck Protection Program Loan Forgiveness Application.
The application consists of four components:
PPP Loan Forgiveness Calculation Form
PPP Schedule A
PPP Schedule A Worksheet
PPP Borrower Demographic Information Form
Forbes Magazine released a detailed article on how to complete the PPP Loan Forgiveness Application to help with the process.
We are here to help navigate you with the process. For more information, please contact us.
Summary of Costs Eligible for Forgiveness:
Eligible payroll cost:
Borrowers qualify for forgiveness for the payroll costs paid and payroll costs incurred during the "Covered Period" or "Alternative Payroll Covered Period."
"Covered Period" is an eight-week (56-day) period starting the date the borrowers PPP loan was disbursed.
"Alternative Payroll Covered Period" is an eight-week (56-day) period that starts on the first day of their first pay period following their PPP Loan Disbursement Date.
Payroll costs are considered paid on the day that paychecks are issued or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is received
Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date.
Total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000 as prorated for the covered period.
Count payroll costs that were both paid and incurred only once
For more information to see what qualifies as payroll cost, please visit Interim Final Rule on Paycheck Protection Program on April 2, 2020 (85 FR 20811).
Eligible nonpayroll costs consistent of:
Business mortgage interest payments on real or personal property
Business rent or lease payments to real or personal property
Utility payments such as electricity, gas, water, transportation, telephone, or internet access.
Eligible nonpayroll cost 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.
We expect that the Small Business Administration will release additional guidelines for the PPP Loan Forgiveness and FAQs in the coming weeks.
The SBA new frequently asked questions have been for the Paycheck Protections Program by the Small Business Administration. Please note that the above FAQ Answers may be subject to additional revision by the subsequent interim final rules that the SBA is expected to release in the coming weeks.
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