Paycheck Protection Program – Forgiveness Application

The Small Business Association (SBA) released its Loan Forgiveness Application for the Paycheck Protection Program (PPP) loan.

The chart below highlights each of the PPP loan provision modifications:

 

Provision Original PPP Loan Provision Updated PPP Loan Provision
Loan term/maturity (excess left after loan forgiveness) 2 years 5 years

 

Loan – Covered Period 2/15/2020 – 6/30/2020 2/15/20 – 12/31/20

 

Loan Forgiveness – Covered Period 8 weeks from disbursement of funds The earlier of 24 weeks from disbursement of funds or 12/31/20 (borrowers receiving loans prior to 6/5/20 may elect, i.e. keep the original 8-week covered period)

 

Payment Deferral 6 months from the end of the covered period Must submit loan forgiveness application within 10 months after the last day of the covered period

 

Loan Forgiveness Reduction Based on Reduction in Full-Time Equivalent (FTE) Employees Waived if number of FTE employees is restored by 6/30/20 Waived if number of FTE employees is restored by 12/31/20 or qualify for the Exemption Based on Employee Availability*

 

Loan Forgiveness Limitation 75% of the loan forgiveness amount must be attributable to payroll costs Must use at least 60% of the covered loan amount for payroll costs

 

*Exemption Based on Employee Availability.

Date 6.05.2020