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SBA Releases Loan Forgiveness Application
as reported by Szaferman Lakind Attorneys at Law

The SBA has released its first version of the application for loan forgiveness. You can download a copy of the application by clicking  HERE . The instructions for the application have provided some additional information on the forgiveness process and interpretation of expenses eligible for forgiveness. This is just the first in what will be many clarifications that will come in the form of additional guidance.
 
The new information consists of the following:
  1. Lease expenses include payments for real estate as well as for personal property. Equipment leases as well as car and truck lease payments appear to be eligible for forgiveness if made during the covered period on agreements in place before February 15, 2020.
  2. Full-time equivalents work 40 hours a week, not 30 hours as previously assumed. We can take the total hours, divide by 40 and round to the nearest tenth to determine FTEs.
  3. Previous guidance suggested that owner-employees, a self-employed individual or general partners were limited in compensation eligible for forgiveness to 8/52 of their 2019 Schedule C (Form 1040) net income from business activities. The application for forgiveness caps the compensation at $15,385. It is possible that the SBA still means 8/52 but no more than $15,385.
  4. Employees who voluntarily resigned, were fired for cause, or voluntarily had their hours reduced are not counted for purposes of determining FTEs.

NJNLA will continue to provide details as they are received .
Additional PPP Loan Forgiveness Webinar added by Szaferman Lakind

Wednesday, May 20th 11am - 12pm

Thousands of New Jersey businesses have already received loan approvals under the first round of funding of the federal government’s Paycheck Protection Program (PPP). Borrowers can begin to apply to their lenders for loan forgiveness eight weeks from the date of their loan origination, but how do you go about this process? Businesses that wait until they have already spent the loan to learn what the forgiveness rules are, may make a mistake they cannot recover from. During this timely program, attorney Scott Borsack will identify eligible PPP expenses and the proportion you may spend on each to remain eligible for loan forgiveness. He will also explain complicated PPP rules related to the number of employees that businesses must retain on their payroll in order to avoid jeopardizing potential loan forgiveness.
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New Jersey Nursery & Landscape Association
www.njnla.org | 609-291-7070 | njnla.director@gmail.com