PPP Loan Forgiveness Application Available

By Bob Barton – Managing Partner | bob.barton@taylorporter.com
 

Click here to access the PPP Loan Forgiveness Application and Instructions

On Friday, May 15, 2020, the SBA released the Loan Forgiveness Application and instructions for borrowers receiving funds under the Paycheck Protection Program (PPP) created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. 

To apply for forgiveness of the PPP loan, a borrower must complete the application, found at https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf, and submit the completed application to the lender servicing the loan.

While the SBA has stated that it plans to issue additional regulations and guidance to further assist borrowers as they complete their applications, the form and instructions notably provide the following measures to reduce compliance burdens and simplify the process for borrowers:

• 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 receiving their PPP loan;
• Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness;
• Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30; and
• Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.

Taylor Porter attorneys continue to closely monitor the developments of the SBA loan programs and the CARES Act. Click here to review recent SBA loan forgiveness guidance, and click here for loan forgiveness general rules. 

Visit the Taylor Porter Coronavirus - Legal News and Business Resources website for updated legislation, news, and legal developments pertaining to COVID-19.

About Bob Barton: Taylor Porter Managing Partner Bob Barton, practicing law since 1994, represents local and national businesses in matters involving commercial litigation and transactions, regulatory and compliance matters, and general litigation. He is the co-chair of the firm's Business and Commercial Litigation practice. Bob has been selected for inclusion in both Louisiana Super Lawyers ​and Best Lawyers in Business Litigation.