May 28, 2020 Update: Summary of Paycheck Protection Program Loan Forgiveness Application

 

On May 15, 2020, the SBA released the Paycheck Protection Program (PPP) Loan Forgiveness Application which included detailed instructions.  This was the first piece of official SBA guidance devoted to loan forgiveness since the Interim Final Rule issued April 15, 2020.

Our new white paper dated May 28, 2020, supersedes our white paper issued on May 20, 2020. In this updated version, we incorporate the additional guidance provided in the IFR concerning PPP loan forgiveness. The purpose of this update is to assist borrowers in completing their PPP Loan Forgiveness Application by incorporating the most up to date guidance available.

As mentioned in earlier correspondence, on May 22, 2020, the SBA released PPP Interim Final Rule – Requirements – Loan Forgiveness.

The Interim Final Rule (IFR) is designed to supplement the guidance previously issued in the Paycheck Protection Program (PPP) Loan Forgiveness Application and help clarify many of the new rules created by the SBA.  While the IFR provides additional guidance on the loan forgiveness program, we fully expect that the SBA will continue to release additional FAQs to address new questions that are posed by borrowers. We will continue to provide timely updates as new guidance is issued.

The attached white paper dated May 28, 2020, by Stephen J. Slade, CPA, is a summary of the highlights of the Paycheck Protection Program forgiveness instructions that have the largest impact on borrowers.

PPP Loan Forgiveness Application IFR Update May 28 2020.

 

This content was updated on May 28, 2020 and May 29, 2020.

DISCLAIMER:  The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.