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May 19, 2020 | Posted in:

PPP Loan Forgiveness Application Now Live

Late on Friday, May 15, the SBA and U.S. Treasury jointly released the loan forgiveness application for Paycheck Protection Program (PPP) borrowers. The 11-page document provides guidance on payroll periods, interpretation of eligible expenses, and more of the unanswered questions being asked by the business community.

 

The Application

Click here to view the full Loan Forgiveness Application:


Download Application PDF
 

Forgiveness Documentation Checklist

For your convenience, here is a one-page documentation checklist of what you will need to prepare and submit with your forgiveness application:


 

What You Need to Know

Some of the highlights from the newly released application include:

  • Step-by-step instructions for how to determine eligibility and to calculate loan forgiveness based on the CARES Act.
  • Defines full-time equivalents as employees who work 40-hours a week (up from 30 hours in the previous guidance).
  • Ability to calculate payroll using an “alternative payroll covered period” to better align with the business’ regular payroll cycles.
  • Guidance on eligible payroll and non-payroll expense flexibility during the 8-week period after receiving the loan.
  • Borrowers who attempted to rehire staff who declined to return to work are still eligible for loan forgiveness (with written proof).
  • Employees who were fired for cause or who voluntarily resigned or reduced their hours are exempt from FTE calculation.
  • Covered rent obligations include business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020.
  • Clarification on compensation limits for owner-employees, self-employed individuals, and partners.
  • Lists what documentation is needed for forgiveness application and the records that need to be retained for six years after the date the loan is forgiven or repaid in full.

 

More New Jersey Grants Becoming Available

Also on Friday, NJ Governor Murphy announced that $50M in federal CARES Act funding will be directly used to support small businesses impacted by COVID-19. We intend to share the details once they are published.

 

Contact Us

While the SBA and Treasury have released the forgiveness information, further official guidance on PPP loans is still expected. We will keep you updated as the information is made available.

Please contact your Alloy Silverstein accountant and advisor if you have any questions or concerns. You may also email solutions@alloysilverstein.com.

COVID-19 Resource Center from Alloy Silverstein CPA Firm Accountants and Advisors NJ

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