Monday, the Small Business Administration released the application and instructions for loan forgiveness as part of the Paycheck Protection Program.
The SBA said it will also provide additional regulations and guidance to help borrowers complete their applications and to explain responsibilities for lenders.
Created by the CARES Act, the loans provided through the PPP were forgivable eight weeks after they are disbursed to small businesses.
The SBA stated the application process includes ways to simplify the application process, 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 application and instructions can be found here.