• 6550 Rock Spring Drive, Suite 530, Bethesda, MD 20817
  • 301-962-1700
  • mendoza@mendozaco.com

Taxpayer Rights

User Rating: 0 / 5

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive
 

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 for the application. A copy of the form may be found here.  The CARES Act Section 1102 “Paycheck Protection Program” and Section 1106 “Loan Forgiveness.

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.

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.

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.

Mendoza & Company © All Rights Reserved 2019. Powered By mendozaco.com