The U.S. Department of Treasury (Treasury) and the Small Business Administration (SBA) recently released the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions for small businesses to use when applying for PPP loan forgiveness with their lender.
The below article provides a general overview of the Application and information about loan forgiveness eligibility under the PPP. For more information about your organization’s loan, please contact your lender.
The Application is an 11-page document that consists of four parts:
1. PPP Loan Forgiveness Calculation Form
2. PPP Schedule A
3. PPP Schedule A Worksheet
4. Optional Demographic Form
Employers must submit the first two items to the same lender they applied for and received the PPP loan from. In addition to helping employers calculate the amount of PPP forgiveness they are eligible to receive, the Application also clarifies definitions, guidance and documentation requirements for applying for loan forgiveness.
The Application and accompanying instructions clarify administrative questions surrounding PPP loans but do not provide guidance on how quickly forgiveness will work and whether bonuses are includable under compensation. Look for the SBA and Treasury to issue regulations and guidance related to these issues in the near future.