The Small Business Administration recently announced that the loan-forgiveness application for the Paycheck Protection Program (PPP) is now available for business owners who applied for and received a PPP loan.
According to the SBA press release announcing the loan-forgiveness application, “the form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).” The SBA also noted that it will provide more guidance for PPP borrowers and lenders at a later date.
What is the Paycheck Protection Program?
The CARES Act established the Paycheck Protection Program loan to prevent small businesses from needing to lay off employees due to coronavirus-related difficulties, like state-enforced restaurant closures. The SBA website says the loan will be forgiven “if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.”
To begin the PPP loan application process, follow the Find a Lender link on the “Paycheck Protection Program Loan Information” page.
How do I apply for PPP loan forgiveness?
Small business owners who want to apply for PPP loan forgiveness need to complete the Paycheck Protection Program Loan Forgiveness Application on SBA.gov. Simply download, complete, and submit the fillable PDF version of the application on SBA.gov, which includes a two-page, line-by-line set of instructions for calculating eligible payroll and non-payroll costs.
Source: SBA Release 20-41
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