The released documents instruct borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). According to a statement, the SBA will also issue regulations and guidance in the near future to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
The form and instructions include several measures to reduce compliance burdens and simplify the process, such as:
• Options for borrowers to calculate payroll costs using an “alternative payroll covered period”
• Flexibility to include eligible payroll and non-payroll expenses paid or incurred
• Step-by-step instructions on how to perform calculations
• Implementation of statutory exemptions from loan forgiveness reduction
• 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 PPP was created by the CARES Act to provide forgivable loans to small businesses during the COVID-19 pandemic.
Click here to view the application and instructions on the SBA website.