Watch our new webinar for an overview on what this means for borrowers
The Small Business Administration and Treasury Department on Friday released the application for business owners to have their Paycheck Protection Program loans forgiven.
Although we are still waiting for additional guidance from the SBA on forgiveness criteria, the release of the application offers some clarity on a few important items. It also gives us the ability to see exactly what borrowers will need to fill out and the documentation that will be needed to receive forgiveness on the loan.
In our new webinar, CPAs Judson Crawford and Scott Clynch discuss the forgiveness application and summarize the following key takeaways for borrowers:
- Alternative payroll coverage periods
- Calculating full-time equivalents
- Owner-employee compensation forgiveness
- Loan reductions for salary or hourly-wage reductions
Most importantly, there are no immediate action items for borrowers in the SBA’s release. The borrower will have until Oct. 31, 2020, to complete the application and submit it to their lender, who will ultimately be responsible for assessing forgiveness. The process can be completed electronically.
In the meantime, watch the webinar for additional clarity around forgiveness and to stay prepared with your documentation.
LINKS TO RESOURCES MENTIONED IN THIS WEBINAR:
SBA WEBSITE: Paycheck Protection Program Loan Forgiveness Application
CWA BLOG: PPP Qualified Expenses
LETTER TEMPLATE: CEDR HR Solutions Rehire Letter (immediate download)
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