On May 15, 2020, the Small Business Administration (SBA) released the Paycheck Protection Program (PPP) loan forgiveness application, with instructions, to inform borrowers about applying for forgiveness of their PPP loans at the conclusion of the eight-week covered period, which began with the disbursement of their loans. The PPP was created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide forgivable loans to eligible small businesses to keep workers on the payroll during the COVID-19 pandemic.
The form and instructions include:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with their 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.
- Instructions on how to complete the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
- Statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
- A new exemption from the loan forgiveness reduction for borrowers who made a good-faith, written offer to rehire workers, which was declined.
View the application and instructions