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COVID-19 Update: PPP Loan Forgiveness Application Released, HEROES Act Passed

By Net Assets posted 05-18-2020 01:23 PM

  

(From blumshapiro) On May 15, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the much anticipated PPP Loan Forgiveness Application.The form and instructions offer borrowers details on how to apply for forgiveness of their PPP loans and additional guidance such as FAQs and interim final rules.

The SBA said its form and instructions are designed to reduce compliance burdens, simplify the process for borrowers and include:

  • Payroll costs paid and incurred during the borrower’s eight-week Covered Period (or an Alternative Payroll Covered Period) are eligible for forgiveness. Payroll costs incurred but not paid during the last pay period of either period are eligible for forgiveness if paid on or before the next regular payroll date.
  • Other payroll costs, including employer contributions for employee health insurance or retirement plan contributions, are eligible.
  • Non-payroll costs must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.
  • Lease and utility payments covers both real and personal property pursuant to lease agreements, as well as electricity, gas, water, transportation, telephone, or internet access.

Download the SBA PPP Loan Forgiveness Application (PDF).

For information on how the PPP will impact single audit requirements for independent schools, see the news item for Friday, May 15 and guidance from Ellin & Tucker .

On Saturday, May 16, the U.S. House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, a $3 trillion relief package that, among other things, extends the PPP program through the end of the year. While the HEROES Act is not likely to become law, a few of the bill’s most significant PPP provisions may move forward, according to experts at blumshapiro.

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