PPP Forgiveness Application Released
The Paycheck Protection Program Loan Forgiveness Application that each borrower will be required to submit to their lender was issued by U.S. Treasury on May 15, 2020.
All borrowers should become familiar with the application and the format of the required schedules.
The instructions to the application answer some key questions we have been waiting for, including:
- Payroll details including name, last 4 digits of each employee's social security number, compensation, and full-time equivalency (FTE) will need to be submitted
- FTE calculation will be based on 40 hours a week and will be an average weekly calculation
- A simplified 1 or ½ FTE can be used
- Calculations for FTE and Salary/Wage forgiveness reductions are provided
- All payroll will be capped at $15,385 for the 8 week covered period ($100,000 weekly equivalent)
- An “Alternative Payroll Covered Period” has been introduced to match borrowers 4 payroll periods near the 8 week period
- In addition to support for all payments, borrowers will have to submit evidence such payments existed at 2/15/2020 (leases, utilities, interest)
Whether employers can fund portions of employees 2019 pension contributions during the covered period as an eligible cost is still unanswered.
Click Here to download the application from the U.S. Treasury's website.