On Friday, May 15, the Small Business Administration (SBA) announced an important release for borrowers who received loans through the Paycheck Protection Program (PPP). The bureau made public a form and instructions for borrowers to use to apply for PPP loan forgiveness.
The application must be completed and submitted to the lender that serviced the borrower’s PPP loan. It includes the following four components:
- A form for calculating the PPP loan forgiveness amount
- A PPP Schedule A
- A PPP Schedule A worksheet
- An optional form for including demographic information about the borrower
To complete the forgiveness form in its entirety, borrowers must supply the following information:
- The legal name of the business (the same name as used on the PPP application form)
- Contact information (address, phone, primary contact, and email address—borrowers should use the same information as they used on their PPP application)
- The PPP loan number assigned to the borrower by the SBA
- The PPP loan number assigned to the lender
- The total number of employees employed by the borrower at the time of the PPP loan application
- The total number of employees employed by the borrower at the time of the loan forgiveness application
- The date that the PPP loan proceeds were disbursed (if borrower received more than one disbursement, the date of the initial disbursement)
- Any economic injury disaster loan (EIDL) advance amount received by the borrower
- The borrower’s EIDL application number, if applicable
- The borrower’s payroll schedule
- The beginning and ending dates of the eight-week period covered by the borrower’s PPP loan
- The alternative payroll covered period, if applicable
- An indication of whether the borrower received a PPP loan of more than $2 million
The form includes step-by-step instructions for borrowers on how to complete the calculations that it requires. The SBA has indicated that it plans to release additional regulations and guidance regarding completing the loan forgiveness application. Click here to view the loan forgiveness application and instructions in full.
We will be providing in-depth guidance to assist clients in completing this application in the coming days.