CLIENT ALERT: PPP Loan Forgiveness Application
The Loan Forgiveness Application (the “Application”) is now available. The Application includes the following:
(i) PPP Loan Forgiveness Calculation Form;
(ii) PPP Schedule A;
(iii) PPP Schedule Worksheet; and
(iv) PPP Borrower Demographic Information Form (Optional)
A couple of items to note:
- A New Alternative Payroll Covered Period. The Application provides a new Alternative Payroll Covered Period which is provided for administrative convenience, whereby borrowers may elect to align the 56-day period with their own payroll period.
- Costs Paid and Costs Incurred. A Borrower can count for the forgiveness calculation: (i) Eligible costs paid during the 56-day period regardless of when they were incurred; and (ii) Eligible costs incurred during the 56-day period so long as they are paid by a standard payment date defined for each cost type. It is important to note that if a cost is both incurred in the period and paid during the period, it can only be counted once towards forgiveness. The April 2, 2020 Interim Final Rule on Paycheck Protection Program (link provided below) offers information as to what qualifies as payroll costs, and what is expressly excluded from the definition of payroll costs.
The Loan Forgiveness Application can be located here:https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
The April 2, 2020 Interim Final Rule can be located here:https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf
*The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning these new statutory obligations and other matters related to COVID-19.