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.