Revised PPP Loan Forgiveness Application
On Wednesday June 17, 2020, the US Small Business Administration, in collaboration with the US Treasury, released a revised Paycheck Protection Program (PPP) Loan Forgiveness Application. The application reflects changes to the PPP made by the Paycheck Protection Flexibility Act of 2020, P.L. 116-142, which became law June 5, 2020.
The revised PPP Loan Forgiveness Application and instructions include a number of notable items. Among them are:
- Health insurance costs for S corporation owners cannot be included when calculating payroll costs; however, retirement costs for S corporation owners are eligible costs.
- Safe harbors for excluding salary and hourly wage reductions and reductions in the number of employees (full-time equivalents) from loan forgiveness reductions can be applied as of the date the loan forgiveness application is submitted. Borrowers don’t have to wait until Dec. 31 to apply for forgiveness to use the safe harbors.
- Borrowers that received loans before June 5 can choose between using the original eight-week covered period or the new 24-week covered period.
For assistance in the completion of the PPP Loan Forgiveness Application, please feel free to contact one of our experienced Tax Professionals at Bormel, Grice & Huyett, P.A. 301-953-3259.Back To List