The U.S. Small Business Administration released the Paycheck Protection Program loan forgiveness application and instructions Monday.
The form and instructions provide guidance to borrowers on applying for forgiveness of their PPP loans.
SBA will also soon provide lenders with guidance on their responsibilities.
Included in the form and instructions were several measures to reduce compliance burdens and simplify the process for borrowers. Borrowers have the option to calculate payroll costs using an “alternative payroll covered period” that aligns with their regular payroll cycles and the flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan.
Also included is the borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30, and the addition of a new exemption from the loan forgiveness reduction for borrowers who have made good-faith, written offers to rehire workers that were declined.
The PPP was created by the Coronavirus Aid, Relief, and Economic Security Act to provide forgivable loans to small businesses to keep employees on the payroll during the COVID-19 pandemic.
As of May 8, New Jersey small businesses received 124,489 PPP loans totaling $17,555,336,569 between rounds one and two of the program.
The application and instructions can be accessed here.
