SBA, Treasury Approve Paycheck Protection Program Loan Application
Mon, May 18, 2020 5:10 p.m.
The US Small Business Administration, in consultation with the US Treasury Department, published the application for Paycheck Protection Program (PPP) enactment and detailed instructions for the application.
The form and instructions inform borrowers how to apply for waiver of their PPP loans in accordance with the Coronavirus Relief, Relief and Economic Security Act (CARES Act). The SBA will also shortly be issuing regulations and guidelines to further assist borrowers in completing their applications and to provide guidance to lenders as to their responsibilities.
The form and instructions contain several measures to reduce compliance and simplify the process for borrowers, including
√ Options for borrowers to calculate labor costs using an “alternate billing cycle” that adapts to regular borrower payroll cycles
√ Flexibility to include eligible wage and non-wage costs paid or incurred during the eight week period following receipt of the PPP loan
√ Step-by-step instructions for carrying out the calculations required by the CARES Act to confirm the authorization to waive credit
√ Borrower-friendly implementation of the statutory exemptions from credit reduction in the event of reinstatement by June 30th
√ Added a new exception to loan waiver for borrowers who submitted a bona fide written offer to reinstate workers that was declined
The PPP was created by the CARES Act to provide forgiving loans to eligible small businesses to keep American workers on payroll during the COVID-19 pandemic. The documents released today will help small businesses ask for forgiveness at the end of the eight week period that begins with their loans being paid off.
Click here to view the application and instructions.