The SBA has released the Paycheck Protection Program (PPP) Loan Forgiveness Application, revised June 16, 2020.  It is anyone’s guess if this is the final version, but it is a good start.  If you’ve received PPP funds and are now trying to navigate the forgiveness application, you will want to spend some time reviewing the application and the calculations at your earliest convenience.  However, the banks haven’t officially started accepting these applications so you should also have an accountant review your documents and application before you submit any request for forgiveness.  Also, the accounting industry is suggesting you don’t rush to apply as there may continue to be changes and bugs that need to be resolved.

There are many factors to consider such as using 8 weeks versus 24 weeks, the split between payroll costs and overhead costs (75/25 or 60/40), and the FTE factor.  The application and calculations are a little different then what was initially expected from the CARES Act language and from the loan application numbers, so it is important to have all your numbers correct and the supporting documents organized to allow for the least possibility of rejection.

We are available to assist you with the applications and calculations.