Paycheck Protection Program Loan Forgiveness Application Now AvailableMay 18th, 2020 by Emmariah Holcomb
The Small Business Administration (SBA) and the Treasury Department recently released the Paycheck Protection Program (PPP) Loan forgiveness application along with application instructions.
The form and instructions advise borrowers on how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to the administration, it aims to issue regulations that will further assist borrowers as they complete the application. The SBA also notes the importance of eligible non-payroll costs while applicants fill out the form.
“An eligible non-payroll 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. Eligible non-payroll costs cannot exceed 25% of the total forgiveness amount. Count non-payroll costs that were both paid and incurred only once,” a portion of the form reads.
The National Lumber and Building Material Dealers Association (NLBMDA) highlighted the form and instructions to its members in a recent release. The form, according to the association, includes measures to reduce compliance burdens and simplify the process for borrowers, which include:
- 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; and
- 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.
“NLBMDA has been heavily lobbying SBA over the past several weeks to update their existing PPP guidance, so we are pleased to see this development. Many dealers have been utilizing PPP loans but have had many important questions, one of them being the process for forgiveness,” the association commented. “We applaud SBA and encourage them to issue further guidance so dealers may have the complete picture of PPP requirements as they navigate economic conditions in the wake of COVID-19.”
To view the PPP Loan forgiveness application, click here.