You got a PPP loan, now what?
The U.S. Small Business Administration (SBA) released new guidance for Paycheck Protection Program (PPP) loan forgiveness. The instructions and application form is meant to help borrowers apply for forgiveness of their PPP loans in accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Simplifying the process for borrowers
The form includes several measures to reduce compliance burdens and simplify the process for borrowers including:
- Options 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. Form instructions state that non-payroll expenses that are incurred during covered period must be paid by the next billing cycle to be included.
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
- Implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30, 2020.
- New exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.
Visit the PPP FAQs page or KRS’ Coronavirus Resources Page for additional information. KRS professionals are available and happy to assist with loan and grant applications. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.