It has been approximately one month since banks began funding
Paycheck Protection Program ("PPP") loans to small
businesses under the CARES Act. A "forgivable" loan
covering up to 2 ½ months of operating costs including
payroll expenses, the first payment is not due for six months
following disbursement. In the meantime, the business-borrower can
ask its lender to forgive up to 100% of the principal amount
borrowed provided it was used to (1) retain employees, (2) make
mortgage interest payments, (3) pay rent, and/or (4) pay
utilities.
On Friday, May 15, the Small Business Administration released
the first iteration of the Loan Forgiveness Application available here. The
document runs 11 pages and consists of five sections: (1)
definitions and instructions; (2) the PPP loan forgiveness
calculation form; (3) the borrower's certification; (4) the
calculation worksheet; and (5) an optional borrower demographic
information form. The Forgiveness Amount Calculation is
