PPP Loan Forgiveness Application

May 19, 2020 | COVID-19

PPP Loan Forgiveness Application

Last week, the Small Business Administration (SBA) released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. While the application is in final form, we should expect to see further narrative guidance from SBA over the next several weeks.The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, 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 PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans. Click here to view the application and instructions.

Let Us Help

Our professionals remain up-to-date with these frequently changing government incentive and aid programs. If you are uncertain about or need further guidance, please call our office.

Aliquippa Office Consolidation

Aliquippa Office Consolidation

Wessel & Company would like to announce that our Aliquippa office will close on May 17th. Professionals currently at the Aliquippa office will now work out of our Cranberry office, located at 1667 Route 228, Suite 301, Cranberry Township, PA 16066. Our spacious...

3 Ways Your Business Can Uncover Cost Cuts

3 Ways Your Business Can Uncover Cost Cuts

Every business wants to cut costs, but it isn’t easy. We’re talking about clear and substantial ways to lower expenses, thereby strengthening cash flow and giving you a better shot at strong profitability. Obvious places to slash costs (such as wages, benefits and...

To Get an “Early” Refund, Adjust Your Withholding

To Get an “Early” Refund, Adjust Your Withholding

If you received a large refund this year, you may want to adjust your withholding. Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you...