The SBA and Treasury have just released the Paycheck Protection Program Loan Forgiveness Application. The application provides detailed instructions as well as some additional long-awaited clarifications. The SBA will be releasing additional guidance soon to assist borrowers with their applications and lenders with guidance on their responsibilities.
Here are several of the important clarifications that are being put forward:
- The FTE calculation will be calculated using the sum of the average hours worked by your employees divided by 40 hours and rounded to the nearest tenth.
- An "alternative payroll covered period" that aligns with your company's actual payroll period will be permitted.
- Interest and lease payments paid on personal property like cars and equipment will be permitted as forgivable expenses, along with the mortgage interest on real property.
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
The link to the application is available on the Treasury's Press Release page
here.
We will provide additional information as it comes available, but we wanted you to be aware as soon as possible that this information has been released.
