The Coronavirus Aid, Relief, and Economic Security (CARES) Act
created the Paycheck Protection Program (PPP) to provide eligible
entities, including small businesses and not-for-profit (NFP)
organizations, with liquidity to support their operations and to
keep their employees paid. PPP loans may be forgiven, in whole or
in part, if certain conditions are satisfied including spending the
PPP funds on qualifying expenses and maintaining specified levels
of payroll and employment. Entities who borrow PPP funds will apply
for forgiveness after their applicable covered period by submitting
an application to their lender that will include documentation of
payroll, employment levels, and payment of qualifying expenses. A
lender has up to 60 days to review and approve the application, and
forward the application to the Small Business Administration (SBA).
The SBA has up to 90 days to review and approve the application for
forgiveness.
