SBA Issues Important Paycheck Protection Program Loan Forgiveness Application And Instructions

The Small Business Administration (SBA) has issued important guidance to Paycheck Protection Program (PPP) borrowers seeking loan forgiveness. A loan forgiveness application has been posted on the SBA website and borrowers will be required to complete this application and submit it to their lender (or the lender servicing the PPP loan) in order to be considered for total or partial loan forgiveness. The application can be found at the link below and PPP borrowers should be aware of the following points set forth in the instructions:

• The SBA has confirmed that the Covered Loan Period begins on the date that PPP loan proceeds were disbursed to a borrower.
• With respect to payroll costs only, the SBA is allowing borrowers with a biweekly (or more frequent) payroll schedule to use the first day of their first pay period after receiving PPP loan proceeds to start the eight-week period (Alternate Payroll Covered Period).