Paycheck Protection Program (PPP) Loan Forgiveness Application is Here!

On May 15, 2020, the U.S. Treasury and SBA released the Paycheck Protection Loan Forgiveness Application and detailed instructions to help business owners and nonprofit organizations seek forgiveness at the end of their covered eight-week loan period. To receive forgiveness, borrowers must complete and submit the application electronically to their lender, who will be responsible for assessing forgiveness.  

Application

The application issued new guidance clarifying the following areas: covered period and alternative payroll covered period, Full Time Equivalent (FTE) reduction exceptions regarding rehiring employees and unfilled positions, and FTE safe harbor regulations exempting borrowers from the loan forgiveness reduction based on FTE employment levels.

To apply for forgiveness, the application requires borrowers to submit the following:

• PPP Loan Forgiveness Calculation Form (which includes a check box for borrowers who received loans above $2 million)
• PPP Schedule A
• PPP Schedule A Worksheet
• Optional PPP Borrower Demographic Information

The SBA will be issuing additional guidance and regulations soon to help borrowers apply for forgiveness, and to provide lenders with guidance on their responsibilities. We will be working through calculations and different scenarios in the next few days and anticipate releasing updates this week.

Contact your Whittlesey advisor for assistance completing your PPP Loan Forgiveness Application and loan certification documentation.