Understanding the NEW PPP Loan Forgiveness Application
The recorded webinar discusses the recently released SBA PPP Loan Forgiveness Application. The form and instructions include several measures to simplify the loan forgiveness process for borrowers and some clarification on some items including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their 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 statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that were declined
- Updated definition of a full-time employee
- Limitation on Owner’s Compensation
For questions or assistance, please contact your
accounting professional at 717-569-2900.
Disclaimer: This presentation is general in nature and is not intended to be, nor should it be, treated as tax or legal advice.