The Small Business Administration (SBA) has released its Paycheck Protection Program (PPP) Loan Forgiveness Application (Opens in a new Window).
Small businesses who received PPP loans from Marine Bank & Trust are invited to review and become familiar with the application (Opens in a new Window) and its detailed instructions. The SBA will soon issue additional regulations and guidance to further assist borrowers as they seek forgiveness at the conclusion of the eight-week covered period, which began with the disbursement of their loans.
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, 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, 2020
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined