Paycheck Protection Program Forgiveness Application Released-Webinar with Haynsworth Sinkler Boyd Sc
As mentioned previously, recent guidance from the US Small Business Administration (SBA) clarified that businesses receiving a Payroll Protection Program (PPP) loan below $2 million are eligible for a safe harbor that deems they are making the loan request in good faith.
To recap: Loans below $2 million will not be subject to further review. While borrowers with loans greater than $2 million “may still have an adequate basis” for applying for a PPP loan based on their circumstances, but they will be subject to SBA review to determine the necessity of the loan request.
On Friday last week, the SBA and the US Department of the Treasury (Treasury) released the PPP loan forgiveness application, which includes detailed instructions on how to complete the application. In addition to guiding how to fill out the form, the application clarifies many frequently asked questions about loan forgiveness, including:
- What Constitutes Covered Payroll Costs
- What Constitutes Covered Non-Payroll Costs
- Required Documentation
The new instructions also add an exemption for loan forgiveness reduction for borrowers who have made a good faith effort to rehire employees, assuming the borrower can show written proof the job was offered and declined.
SC Chamber member Haynsworth Sinkler Boyd (HSB) has prepared a very comprehensive summary of the new application and instructions which you can read here. HSB will also be hosting a webinar on Thursday, May 21st, at 2 pm to discuss the application and instructions. Please register here. All questions for this webinar should be submitted to COVID19Response@scchamber.net by 12 pm on Wednesday, May 20th.