The U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, has released an application for Paycheck Protection Program (PPP) loan forgiveness along with instructions for completion.
The form and instructions can be located here: Forgiveness Application
The SBA indicated they created the form with the intent to reduce compliance burdens and simplify the process for borrowers, including:
- Options for “alternative payroll covered period” that aligns with the borrower’s (biweekly or more frequent) 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
- 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
Additional guidance and regulations are expected to be issued as well. Meanwhile the application does specifically reference documentation requirements that will include items such as:
- Employee listings including compensation and FTEs during the Covered Period
- Bank account statements or third party payroll reports during the Covered Period
- Tax forms (Form 941) for periods that overlap the Covered Period
- Canceled checks, receipts or account statements documenting employer contributions for health and retirement payments during the Covered Period
- Amortization schedules, mortgage, lease and/or rental agreements and cancelled checks documenting payments during the Covered Period
- Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period as well as cancelled checks or account statements
For more information, please contact our Albany office at (229) 883-7878 or our Atlanta office at (404) 220-8494.
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