SBA releases Paycheck Protection Program loan forgiveness application
The Small Business Administration Friday released the that borrowers must submit to the lender servicing their Paycheck Protection Program loan to request forgiveness for some or all of the loan.
The application contains worksheets to calculate whether the borrower qualifies for loan forgiveness and, if so, how much of the loan may be forgiven based on the value of the loan received, relevant payroll and nonpayroll costs for the loan period, and any adjustments to the number of employees and compensation. The application also details the documents that borrowers must retain but are not required to submit as part of the application, including documentation supporting the necessity of the loan and the borrower’s eligibility for a PPP loan.
The Coronavirus Aid, Relief, and Economic Security Act created the forgivable loans to help eligible small businesses keep workers on the payroll during the pandemic.