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Paycheck Protection Program-Loan Forgiveness
HOW TO APPLY FOR LOAN FORGIVENESS FOR YOUR PPP LOAN
On May 15, 2020, the SBA issued a Loan Forgiveness Application package with instructions and announced it will also soon issue regulations and guidance to help borrowers complete their applications and inform lenders of their responsibilities.
The form and instructions include:
- Options for borrowers to calculate payroll costs using an "alternative payroll covered period" that aligns with borrowers' regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after borrowers received their PPP loan
- Step-by-step instructions on how to perform calculations required by the CARES Act to confirm eligibility for loan forgiveness.
- Statutory exemptions fro loan forgiveness reduction based on rehiring by June 30.
- Descriptions of documents you need to gather (e.g., payroll records, eligible non-payroll costs like rent, mortgage interest, covered business utility payments, etc.
- The new exemption for borrower whose good faith, written offers to rehire workers were declined.
When to submit your Loan Forgiveness Application:
- The earliest you can submit your Loan Forgiveness application is 8 weeks (56 days) after receiving your PPP funds.
- BankSouth will notify you in advance of that date that you are eligible to begin the application process. Check back here frequently for additional information regarding electronic submission of your Loan Forgiveness Application.