Convert Your Payroll Protection Loan into Free Grant Money with this New SBA Form
Yesterday, the SBA and Treasury Department released the application for business owners in order to have their PPP loan forgiven. The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- 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
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- 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
Additionally, if a partnership received a PPP loan that did not include any compensation for its partners, the loan amount can be increased to include partner compensation if the PPP loan only included amounts necessary for payroll costs of the partnership’s employees and other eligible operating expenses, but did not include any amount for partner compensation.
We are counselling our clients on whether they meet the loan requirement of necessity, and on obtaining maximum loan forgiveness. Contact us should you feel the need for assistance.
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