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Late on Friday, May 15, the SBA, in consultation with the Department of the Treasury, issued the PPP Loan Forgiveness Application (“Forgiveness Application”) with corresponding detailed explanations. Below is a high-level overview of the guidance. Blue & Co. will be releasing detailed analysis and education on the application in the upcoming week. Stay tuned. The Forgiveness Application provides detailed explanations as to the process by which PPP borrowers will ultimately apply for forgiveness of PPP loans, in accordance with Section 1106 of the CARES Act. The Forgiveness Application include processes to reduce borrower compliance matters and ultimately simplify the procedures that borrowers must take to apply for forgiveness of their PPP funding including: An “Alternative Payroll Covered Period” election that will enable borrowers to align the 8-week covered period with the borrowers’ regular payroll periods; The ability for borrowers to include eligible payroll and non-payroll expenses “paid” or “incurred” during the 8-week (56-day) period after receipt of the PPP funds; Detailed instructions of the calculations required for purposes of forgiveness (including FTE equivalency, reductions, etc.); Further explanation of the rehire and salary restore implications on or before June 30th; The development of a new exemption protecting borrowers for good-faith re-hire efforts for employees that decline the offer (electing to remain unemployed). A complete view of the Forgiveness Application can be obtained here. Our review of the main issues the application and instructions address can be found here.
Late on Friday, May 15, the SBA, in consultation with the Department of the Treasury, issued the PPP Loan Forgiveness Application (“Forgiveness Application”) with corresponding detailed explanations. Below is a high-level overview of the guidance. Blue & Co. will be releasing detailed analysis and education on the application in the upcoming week. Stay tuned.
The Forgiveness Application provides detailed explanations as to the process by which PPP borrowers will ultimately apply for forgiveness of PPP loans, in accordance with Section 1106 of the CARES Act.
The Forgiveness Application include processes to reduce borrower compliance matters and ultimately simplify the procedures that borrowers must take to apply for forgiveness of their PPP funding including:
A complete view of the Forgiveness Application can be obtained here. Our review of the main issues the application and instructions address can be found here.