On May 15, 2020, the Small Business Administration (SBA), in consultation with the U.S. Department of Treasury (Treasury) released the Paycheck Protection Program (PPP) Loan Forgiveness Application (the Forgiveness Application) and detailed instructions for the Forgiveness Application. To apply for PPP loan forgiveness, the borrower must complete the Forgiveness Application and submit the completed application and required documentation to its lender.
The Forgiveness Application consists of four components: 1) the PPP Loan Forgiveness Calculation Form; 2) PPP Schedule A; 3) the PPP Schedule A Worksheet; and 4) an optional PPP Borrower Demographic Information Form. The Forgiveness Application includes a list of documents each borrower must submit with its Forgiveness Calculation, as well as a list of documents that each borrower must maintain but is not required to submit. All borrowers must submit the PPP Loan Forgiveness Calculation Form, PPP Schedule A and the required documents to their lender.
The Forgiveness Application provides instructions for applying for PPP loan forgiveness and clarifies several components of the forgiveness calculations. As noted in the SBA’s accompanying press release, the Forgiveness Application includes several measures to simplify the process for borrowers, including:
The Forgiveness Application is consistent with the recent guidance issued by the SBA and Treasury and includes several clarifications that warrant highlighting:
The SBA’s press release that accompanied the Forgiveness Application provided that the “SBA will also soon issue regulation and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.”
If you have any questions, please contact Tarter Krinsky and Drogin’s COVID-19 response team at CV19team@tarterkrinsky.com.
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