On Friday, May 15th, the Small Business Administration released the Loan Forgiveness Application. The document provides additional guidance as well as instructions to inform borrowers on how to apply for forgiveness of their PPP loans. Key takeaways include:
- An “Alternative Payroll Covered Period” is created for borrowers with a weekly or biweekly payroll cycle.
- Costs incurred during the Covered/Alternative Payroll Covered Period can be included in the forgiveness amount if they are paid on or before the next regular payroll date or the next regular billing date, even if that date is after the Covered/Alternative Payroll Covered Period.
- A Full Time Equivalent (FTE) is defined based on a work week of 40 hours versus the standard of 30 hours for other SBA programs and the Affordable Care Act.
- Covered rent obligations and covered mortgage obligations include both real and personal property.
These are just a few of the items noted in the new Application. For a more comprehensive summary or to learn how they impact you, reach out to our Corporate Finance Consulting team today.