SBA ISSUES PPP LOAN FORGIVENESS APPLICATION
- Borrowers can elect an Alternative Payroll Covered Period that starts with their first regular payroll after loan funding
- Eligible expenses include those paid within the 8-weeks and those incurred in the 8-week period and paid by the next regular due date/payroll date
- Owner/employees and those with self-employment income are capped at the lower of $15,385 or 8-weeks’ worth of their 2019 compensation
- Instructions are given for computing full-time equivalent employee headcount
- Rules for the salary/wage reduction test and the headcount test are clarified
On Friday May 15, the Small Business Administration (SBA) issued the much-anticipated application form for requesting forgiveness of Paycheck Protection Program (PPP) loans. The instructions that were issued along with the form go a long way towards answering the many questions that borrowers have regarding forgiveness, but there are still some unresolved issues.