As business owners received their Paycheck Protection Program (PPP) loans, the big question remained on how the forgiveness portion of the loans will work. On Friday, May 15, 2020, the SBA and Treasury released the Loan Forgiveness Application.
The form and instructions explain how to apply for forgiveness of PPP loans. SBA is also expected to soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
This overview provides the understanding SVA has on the recently released guidance on:
- Defining Covered Payroll
- Application Timeframes
- Application Definitions
- Forgiveness Amount Calculation
- Documentation Needed
(Note: this information is subject to change based on further clarifications from SBA)