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SBA Releases PPP Loan Forgiveness Application and Instructions

SBA Releases PPP Loan Forgiveness Application and Instructions

The Small Business Administration (SBA) released the Paycheck Protection Program (PPP) loan forgiveness application along with detailed instructions on May 15, 2020. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans.

The form includes measures that reduce compliance burdens and simplify the process for employers:

  • Borrowers may calculate payroll costs using an alternate payroll covered period that aligns with regular payroll cycles
  • More flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight week period after receiving a 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 statuary exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

Apply for PPP Loan Forgiveness

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