PPP Forgiveness Application
The SBA and Treasury issued the following press release (highlight ours) regarding the PPP Loan Forgiveness Application for BORROWERS. It is available here - https://content.sba.gov/sites/default/files/2020-05/3245-0407%20SBA%20Form%203508%20PPP%20Forgiveness%20Application.pdf.
You will want to review it carefully and make sure that each of your PPP borrowers have a copy.
PLEASE NOTE - THIS IS FOR BORROWERS ONLY. SBA will issue additional guidance for LENDERS with regard to lender responsibilities at a later date. It also appears that additional guidance to assist borrowers in completing this application will be issued as well. We will notify you when both are available. We do not have a time-table for when that will be.
Please also note – We cannot answer questions about this application at the field level. If you have questions at this time, please e-mail [email protected].
U.S. Treasury Department
Office of Public Affairs
Press Release: May 15, 2020
Contact: Treasury Public Affairs, (202) 622-2960
SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application
WASHINGTON—Today, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.
The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
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
- 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
The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released today will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans.
Click here to view the application and instructions.