The Small Business Administration (SBA) and the Treasury Department recently released the Paycheck Protection Program (PPP) Loan forgiveness application along with application instructions.
The form and instructions advise borrowers on how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to the administration, it aims to issue regulations that will further assist borrowers as they complete the application. The SBA also notes the importance of eligible non-payroll costs while applicants fill out the form.
“An eligible non-payroll cost must be paid during the covered period or incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period. Eligible non-payroll costs cannot exceed 25% of the total forgiveness amount. Count non-payroll costs that were both paid and incurred only once,” a portion of the form reads.
The form includes measures to reduce compliance burdens and simplify the process for borrowers, which include:
- 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;
- Implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30; and
- 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 Fenestration and Glazing Industry Alliance (FGIA) has been keeping its members updated on matters related to the PPP and CARES Act.
“Our goal is to connect FGIA members with timely, relevant resources and information to help their businesses navigate the uncertainty of the pandemic. We continue to communicate to members about how small businesses can apply for forgivable loans outlined by the SBA as part of the CARES Act and provide updates to these programs as they become available,” says Kathy Krafka Harkema, FGIA U.S. codes and regulatory affairs manager. “Representing members in both the U.S. and Canada, FGIA has also shared information on the Canadian government’s extension of the Canada Emergency Wage Subsidy through August 29, which provides up to 75% of wages for a maximum of $847 a week (Canadian) for qualifying Canadian citizens to provide pandemic economic relief.”
To view the PPP Loan forgiveness application, click here.