PPP Loan Forgiveness Application Now Available

Dear WANADA Members,

Late on Friday, the Small Business Administration and U.S. Treasury Department published their Paycheck Protection Program Loan Forgiveness Application. In addition to publishing the application form itself, the Treasury Department issued some preliminary information about the forgiveness process at this link.

While it is very likely that most PPP loan recipients will not be filing for forgiveness until after June 30, which is the current deadline for many of the spending provisions that would make a PPP loan forgivable, we appreciate the federal government providing borrowers with more than a month of lead time to review the application process. 

The loan application form provides a helpful outline of how to calculate loan forgiveness, along with several alternate options for itemizing payroll costs and a review of the documentation needed in order to get full forgiveness. We encourage you to review the application form with your legal and financial advisors well ahead of actually submitting it.

We, and our friends at the National Automobile Dealers Association, are awaiting further SBA and Treasury guidance on several matters -- namely, whether floorplan interest payments will be forgivable. When the SBA and Treasury release additional guidance or rules, we will let you know as soon as possible.

In the meantime, please continue referring to NADA's thorough CARES Act FAQs page, and NADA's preliminary guidance on loan forgiveness, as helpful tools to steer you through the PPP loan forgiveness process. NADA also issued a guide last week on Question 46 published by Treasury in the department's  PPP FAQ page, which clarifies that businesses requesting under $2 million in loans will be deemed to have applied in good faith.

You can access the resources linked in this email by visiting NADA's Coronavirus Hub, or by viewing WANADA's COVID-19 Information Library.  Please let me or Joe Koch ( jk@wanada.org ) know if you have any questions. 

Sincerely,
  
John O'Donnell
WANADA President and CEO