Guidance For Lenders On The Paycheck Protection Program Loan Forgiveness Application

On May 15, 2020, the Small Business Administration (SBA) and the Department of the Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application, which provides detailed instructions on how to apply for and calculate the forgiven amount of a PPP loan. The application is available here. For lenders, this application provides an overview of the information SBA expects them to gather to calculate the loan forgiveness amount. Set out below are highlights of new clarifications offered by the application.

Payroll Covered Period Flexibility. Borrowers may receive loan forgiveness for certain payroll costs paid during the eight-week period after receiving the PPP loan. Borrowers may choose between the following dates to determine the start to the eight-week period in which their expenses will be forgiven: