Paycheck Protection Program (“PPP”) Loan Forgiveness Application Available
The PPP loan forgiveness application has been released by the Small Business Administration (“SBA”) and U.S. Treasury Department.
Please find the link to the application here.
The application should be completed and submitted to your PPP lender.
Loan forgiveness is based on the employer maintaining or rehiring employees and maintaining salary levels. Factors such as full-time headcount declines or decreased salaries and wages will impact loan forgiveness amounts.
The SBA outlines some important features of the loan forgiveness application and instructions, such as:
- 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 nonpayroll expenses paid or incurred during the eight-week period covered by the PPP loan.
- 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 for borrowers who have made a good-faith, written offer to rehire workers that were declined.
Please note that the SBA provides a “safe harbor” for borrowers that received (together with their affiliates, as applicable) PPP loans of less than $2 million. Under the “safe harbor,” the SBA will presume that the “current economic uncertainty makes the loan request necessary to support ongoing operations of the Applicant” in order to help the SBA use its resources to focus on reviewing larger loans. The loan forgiveness application requires borrowers to check a box indicating whether they received (together with their affiliates, as applicable) a PPP loan of greater than $2 million.
Moorhead Real Estate Law Group is committed to assisting our clients and colleagues during this time. If you have questions or need assistance, please do not hesitate to contact us.
This blog is made available by Moorhead Real Estate Law Group for educational purposes only, as well as to provide general information and a general understanding of the law, not to provide specific legal advice. By using this blog site, you understand that there is no attorney-client relationship with Moorhead Real Estate Law Group and that by contacting our firm, an attorney-client relationship is not formed until stated by an attorney of our firm. The blogs provided by Moorhead Real Estate Law Group should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
Anna-Marie Forshee is an attorney at Moorhead Real Estate Law Group.
Her primary focus is real estate and condominium and community association law.