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SBA Forgiveness Instructions
18
May

SBA Forgiveness Instructions

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SBA AND TREASURY RELEASE PPP LOAN FORGIVENESS APPLICATION AND INSTRUCTIONS

On May 15, 2020 (Release 20-41), the SBA and Department of the Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application and Instructions under the CARES Act.  A copy of the form may be found here.  Here are the links for the CARES Act Section 1102 “Paycheck Protection Program” and Section 1106 “Loan Forgiveness".

 

SBA APPLICATION AND INSTRUCTIONS

 

The SBA press release issued the instructions for the Paycheck Protection Program (PPP) Loan Forgiveness and the Application for the Forgiveness.

The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities,

The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

 
  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
 
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
 
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
 
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
 
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that were declined

 

SBA has stated that it will be issuing additional regulations and guidance to both borrowers and lenders in regard to the forgiveness process.

 

OUR ADVISORY SERVICES:

 

If you have any questions regarding the PPP loan program, please contact Mendoza, Silva & Company for SBA Audit Compliance Services with the PPP and SBA EILD Loans.  

We can help you with;

  1. Bank Accounting & Grant Allocation (QuickBooks),
  2. SBA Section 1102, 1106 & 1110 Law Requirements,
  3. SBA Audit Record Keeping and Accounting Compliance for Grant Forgiveness,
  4. QuickBooks Accounting Monitoring,
  5. Payroll Accounting from Grant Allocation,
  6. Other Advisory & SBA Grant Audit Representation,
  7. IRS Representation if applicable

Call at 301-962-1700 for additional information. 

 

About Us

Mendoza & Company, Inc. is a full-service accounting, Payroll, and Tax Resolution firm in Bethesda, MD and Miami, FL. As a client, you gain a professional team with expertise in multiple fields, providing you the right advice to strengthens your organization and long-term goals.

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