Recent revisions to the CARES Act allow borrowers to elect to expand the covered period during which Paycheck Protection Program (PPP) loan proceeds must be used from 8 to 24 weeks to qualify for full PPP loan forgiveness. SBA’s initial guidance limited forgivable payroll costs (including the value of certain noncash compensation) for employees to.
The SBA and Treasury Department today announced the release of two Paycheck Protection Program (PPP) loan forgiveness applications—one revised and one new—which are intended to streamline the loan forgiveness process. Both application forms are intended to be consistent with the recent changes made to PPP by Congress, as signed by President Trump on June 5,.
On June 3, 2020, the Senate passed the House version of the Paycheck Protection Program Flexibility Act of 2020 (the “Act”). The Act makes important changes to the Paycheck Protection Program (“PPP”) regarding how borrowers can use PPP loan funds and maximize potential loan forgiveness. President Trump is expected to sign the Act into law.
On May 22, 2020, the SBA issued two new Interim Final Rules relating to Paycheck Protection Program (“PPP”) loan forgiveness, one rule with guidance for borrowers regarding requirements for loan forgiveness, which can be found here, and the other rule with guidance for lenders regarding PPP loan review procedure and lender responsibilities, which can be.
A critical aspect of the PPP Loan program is the promised tax-free forgiveness of loans used for specific payroll and operating expenses. On Friday, May 15, 2020, the SBA released the loan forgiveness application and detailed instructions for applicants seeking forgiveness of their PPP Loan. The application and instructions can be found here. Notably, the.