As of Friday, May 15, 2020 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
What you need to know about the latest on the Massachusetts Paid Family & Medical Leave Act
There are many questions around what the guidance states, what is required of you, and what the impact is on your business. Final regulations were expected to be released July 1, 2020 and deductions were to begin on July 1st. Updates to the regulations have pushed the deadlines out to the September/October time frame. See what’s expected and check here regularly for the latest updates to regulations and deadlines.
Find the latest guidance here.
Are You Required to File Form 1099?
If you’re self-employed, or own a small business, and have questions on filing 1099s or other information returns, here is a good summary of those requirements: