On Friday, May 15, 2020, the Small Business Administration (SBA) and Department of Treasury released the Paycheck Protection Program (PPP) loan forgiveness application. The application includes step-by-step instructions on how to apply for and calculate PPP loan forgiveness in compliance with the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
The application consists of: (1) the PPP Loan Forgiveness Calculation Form; (2) PPP Schedule A; (3) the PPP Schedule A Worksheet; and (4) the PPP Borrower Demographic Information Form (optional). All borrowers must submit (1) and (2) to their lender, together with supporting documentation, described below.
The form and instructions clarify several measures to reduce compliance burdens and simplify the forgiveness process for borrowers, including:
Borrowers must submit the following documentation with its loan forgiveness application:
The application also states that the SBA will release additional regulations and guidance to further assist borrowers as they complete their applications and to provide lenders with guidance on lender requirements in the forgiveness process.
The PPP loan forgiveness application and instructions are available here.
The instructions surrounding PPP loan use and forgiveness are complex and business specific. If you have concerns about the instructions, please contact Ford Turrell, Timothy Hillegonds, Rob Davies, Matthew Crowe or your Warner attorney.
