PPP Loan Forgiveness Calculation Form On May 15th the SBA issued a calculation form to assist companies with the process to have their loans forgiven. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness 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 Click here to download the form. May 13 Guidance Brings Clarification on PPP Certification Requirements The U.S. Department of the Treasury has issued guidance that clarifies how the Small Business Administration (SBA) will review a borrower’s required good-faith certification concerning the necessity of the borrower’s PPP loan request. FAQ #46, issued on May 13, provides that “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” It should be noted that this $2 million threshold will not be solely based on the loan size of the borrower, but rather will be based on the aggregate loans of the borrower and all of its affiliates. Read more... SBA Issues Additional PPP Loan Guidance May 5, 2020 - The SBA updated its FAQ document. Companies who have obtained a PPP loan should review the document for further guidance. Read more... Small Business Administration Paycheck Protection Program The Small Business Administration (SBA) is now taking applications from small businesses for loans funded through the recent stimulus package. We recommend that members review the various stimulus programs available including:
You can find more information on these programs at the SBA's Paycheck Protection Program page. Additionally, here are some resources for the Paycheck Protection Program: Payroll Protection Program Overview Payroll Protection Program Borrower Information Fact Sheet Paycheck Protection Plan Application Paycheck Protection Loan Estimator Questions to Ask Before Applying for a Paycheck Protection Program Loan Ask your banker these five important questions before applying for a PPP loan. Understanding these points can help you complete the application process efficiently and help you support the maximum allowable loan for your organization. Read more... Treasury Guidance Clarifies Key Paycheck Protection Program Questions The CARES Act was passed March 27 and established the Paycheck Protection Program (PPP), which was designed to provide temporary relief to eligible organizations. With the PPP came some confusion and room for interpretation. Guidance is being released quickly and changing daily. The Department of the Treasury and the Small Business Administration (SBA) have both issued guidance to continue to clarify answers to key questions that borrowers and lenders have. Read more... |
