What is the Paycheck Protection Program Loan Forgiveness Application from the SBA?
Update: The Small Business Administration (SBA) will begin accepting Paycheck Protection Program (PPP) loan forgiveness applications from lenders on Aug. 10. This date is subject to extension if any new legislative amendments to the forgiveness process necessitate changes to the SBA’s system. Borrowers may submit their PPP loan forgiveness applications to lenders before the end of their eight- or 24- week covered period, provided the borrower has used the loan proceeds for which the borrower is requesting forgiveness and the borrower’s loan forgiveness application accounts for any salary reductions in excess of 25 percent for their full covered period.
If you were among the first wave of businesses to receive a Paycheck Protection Program loan after the passage of the CARES Act, you’ve arrived at the point where you can seek loan forgiveness.
The process of applying for loan forgiveness can get complicated, so it’s important to understand what it entails so you potentially can maximize your forgiveness amount and your time in preparing the materials to complete the application.
The Small Business Administration (SBA) released the PPP Loan Forgiveness Application and additional guidance. Borrowers can use the application to calculate their loan forgiveness amount.
You’ll need the following material to complete the application:
- Borrower and loan Information
- Payroll costs from your chosen covered period
- Non-payroll costs from your covered period
- Your full-time equivalent (FTE) employee count
Filling out PPP forgiveness application
For the loan forgiveness application, all borrowers must submit a PPP Schedule A and the PPP Loan Forgiveness Calculation Form. Additionally, you must certify the Loan Forgiveness Application and provide support for payroll and non-payroll costs, and full-time equivalent (FTE) employee counts.
To assist in completing the Schedule A, there is a Schedule A Worksheet (optional). You are not required to use the provided worksheet but must create and retain either the worksheet or its equivalent to support your application.
- PPP Loan Forgiveness Calculation Form
- PPP Schedule A
- PPP Schedule A Worksheet
- Borrower certifications