We have been told by the U.S. Small Business Administration that, in consultation with the U.S Department of the Treasury, it has released the Paycheck Protection Program (PPP) Loan Forgiveness Application.
The instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The SBA will soon issue regulations and guidance to assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
The PPP Loan Forgiveness Calculation 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 the 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 documents released this weekend 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 new application.
In addition, Governor Cuomo has released a Business Reopening Lookup Tool that allows businesses to input information about the location and nature of their operations to determine whether their business is eligible to reopen. If the business is eligible to reopen the tool will provide the relevant guidance materials for reopening safely and the public health and safety standards with which the business must comply. The tool can be used for both essential and non-essential businesses. You can view this tool here.