On August 4, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released Frequently Asked Questions (FAQ) to address borrower and lender questions regarding Paycheck Protection Program (PPP) loan forgiveness. Borrowers and lenders may rely on the guidance provided in the FAQ as the SBA’s interpretation of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as amended by the Paycheck Protection Program Flexibility Act, and the Paycheck Protection Program Interim Final Rules.
You can find the FAQ here: https://home.treasury.gov/system/files/136/PPP–Loan-Forgiveness-FAQs.pdf
The FAQ addresses a range of important topics, including:
- Eligibility of payroll costs, including owner compensation, for loan forgiveness;
- Eligibility of non-payroll costs for loan forgiveness; and
- Reductions to loan forgiveness.
In addition, the SBA previously announced that it will begin accepting loan forgiveness decisions and documentation from PPP lenders through the SBA’s PPP Forgiveness Platform beginning August 10, 2020.
Loan forgiveness of PPP loans will likely continue to raise questions for borrowers and lenders, and the SBA may provide additional guidance on this topic. We encourage borrowers and lenders to regularly visit the Department of the Treasury CARES Act website here: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses for additional updates. We are also continuing to monitor the latest guidance being issued. Please contact us at 303-731-0007 if we can assist you.