{"id":1374,"date":"2020-05-20T12:02:26","date_gmt":"2020-05-20T12:02:26","guid":{"rendered":"https:\/\/www.smecpa.com\/?p=1374"},"modified":"2020-05-20T12:18:34","modified_gmt":"2020-05-20T12:18:34","slug":"ppp-forgiveness-application","status":"publish","type":"post","link":"https:\/\/www.smecpa.com\/ppp-forgiveness-application\/","title":{"rendered":"PPP Forgiveness Application"},"content":{"rendered":"\n<p class=\"has-text-color has-very-dark-gray-color\">On May 15<sup>th<\/sup> the U.S. Small Business Administration (SBA) released the link to the &#8220;<a rel=\"noreferrer noopener\" href=\"http:\/\/r20.rs6.net\/tn.jsp?f=001DBxQWb1xAEtxN73UnQ4JQti3ByLL9-HCD1N9bAFiD8PGDadzhLIS-F3JRVP5E99Y9Vm_a49GBe0KSJJHHzESG7pH59SSvGdU524WBvdbHU-7Yzl3QBBJu7tddoeUNJf2IrQwsfsOwjalglJHFLBsO1rzRgOmTw0IdEe2Qbce_dwj29paYXDGROoAdE3VQ8rKxiSCI0jxFcs8K86oJ_mYXvxPDeK_wvjkiw8_mY4OplmLxzwZTIfofmsdA-g5-JRZVRgjgZMqd_QBBKQujCCbrg==&amp;c=eafO9Zl54lDNx1bdmsIGGKbGWk29p_z5fsX3iGSQwoCbtrr7KtTVWg==&amp;ch=uYNcBVyQXIO40ABQ0LKZwU_yiVAz22S2pEakIBa6eThhbOeJYbKQJQ==\" target=\"_blank\">Paycheck Protection Program Loan Forgiveness Application<\/a>,&#8221; which contains information on PPP Loan forgiveness along with instructions for completing the application form.<\/p>\n\n\n\n<p>The SBA said its form and instructions are designed to reduce\ncompliance burdens and simplify the process for borrowers.&nbsp;&nbsp;The form\nand instructions&nbsp;provide details on how to apply for forgiveness of PPP\nloans, consistent with the (CARES) Act, P.L. 116-136.<\/p>\n\n\n\n<p>The application and instructions are the first detailed guidance\nfrom the SBA and U.S. Treasury regarding details of computing PPP loan forgiveness.\nWhile this guidance does not answer some questions borrowers may still have\nabout the program, it does provide some additional clarity on a few key items:<\/p>\n\n\n\n<ul><li>Flexibility in the &#8220;incurred&#8221; and &#8220;paid&#8221; language in the CARES Act to include eligible payroll and non-payroll expenses both paid OR incurred during the eight-week period after receiving the PPP loan. The form instructions state that non-payroll expenses incurred during the 8-week covered period must be paid by the next billing cycle in order to be included as eligible expenses;<\/li><li>Interpretation for the calculation of full-time equivalents is relatively borrower-friendly, with 40 hours being used as the base to determine FTEs;<\/li><li>An explicit statement that covered rent obligations includes leases on both real and personal property;<\/li><li>Options for borrowers who use a biweekly or more frequent payroll schedule to allow for the calculation of payroll costs using an &#8220;alternative payroll covered&#8221; period that aligns with the borrower&#8217;s regular payroll cycle;<\/li><li>An indirect bar on using bonuses to owner-employees to fill shortfalls in eligible payroll costs for loan forgiveness and an inference that bonuses are acceptable if paid to rank-and-file employees due to a lack of any such language as it relates to other employees (further     guidance is expected on this issue);<\/li><li>Implementation of statutory exemptions from loan forgiveness reduction based on a rehire date by June 30, 2020;<\/li><li>An additional new exemption from the loan forgiveness reduction for borrowers who made a good-faith, written offer to rehire      employees, which the worker(s) declined; and,<\/li><li>Step-by-step instructions on how to perform the calculations required by the CARES Act to conform with eligibility requirements for loan forgiveness.<\/li><\/ul>\n\n\n\n<p>The SBA plans to release regulations and guidance in the coming\ndays to assist borrowers as they complete their loan forgiveness applications.\nWhen final guidance is released, our team will make available a new estimator\nfor forgiveness.&nbsp;The new guidance updates several of the assumptions made\nin the previous model released. More specifically, this recent guidance made\nsignificant changes to the FTE calculations, Covered Period start date, and the\n25% reduction calculation. These changes will likely improve eligibility of forgivable\namounts. <\/p>\n\n\n\n<p>If you need assistance SME CPAs is here to help you clarify how this current guidance applies to your situation. <\/p>\n\n\n\n<p>706.722.5337 Augusta 803.648.6047 Aiken<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On May 15th the U.S. Small Business Administration (SBA) released the link to the &#8220;Paycheck Protection Program Loan Forgiveness Application,&#8221; which contains information on PPP Loan forgiveness along with instructions for completing the application form. The SBA said its form and instructions are designed to reduce compliance burdens and simplify the process for borrowers.&nbsp;&nbsp;The form&hellip;<\/p>\n","protected":false},"author":7,"featured_media":1375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>PPP Forgiveness Application - SME CPA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smecpa.com\/ppp-forgiveness-application\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PPP Forgiveness Application - SME CPA\" \/>\n<meta property=\"og:description\" content=\"On May 15th the U.S. Small Business Administration (SBA) released the link to the &#8220;Paycheck Protection Program Loan Forgiveness Application,&#8221; which contains information on PPP Loan forgiveness along with instructions for completing the application form. 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