By YSN Staff
The Small Business Administration (SBA) and the U.S. Treasury Department have released an 11-page application for borrowers seeking loan forgiveness under the Paycheck Protection Program (PPP).
The online document, which was issued more than two weeks after a deadline set by Congress, helps clear up confusion over the program’s forgiveness formulas and provides guidelines and instructions for completing the application.
According to American Banker, the form also features new measures that will benefit small businesses, including an option to calculate payroll costs using an “alternative” eight-week period that reflects their regular payroll cycles, and an exemption for those who made “a good faith written offer to rehire workers that was declined.”
Borrowers will also be able to count any unpaid expenses toward forgiveness, as long as the outlays are eligible under the program and paid by the next regular payroll or billing date, the publication said.
However, the requirement that 75 percent of the borrowed funds be spent on payroll for the loan to be forgiven remains unchanged.
PLEASE NOTE: AVB advises members to first contact the financial institution they received the loan through, to determine if they should use the SBA’s application or whether their bank has its own application form and has set any deadlines for submitting it.