PPP Loan Update: FAQ's

On August 4, 2020, the U.S. Small Business Administration, in coordination with the Department of Treasury, published new guidance regarding the Paycheck Protection Program (“PPP”) in the form of frequently asked questions (“FAQ”) that focus on PPP loan forgiveness issues.  The FAQ is available here.

The FAQ is divided into four sections.  Each section focuses on a distinct aspect of the PPP loan forgiveness process.  Although the general topics discussed are not new, the FAQ provides specific details and helpful examples.  Here is a general breakdown and highlights:

General loan forgiveness

• Provides guidance on eligibility and use of the EZ loan forgiveness application
• Discusses timing for submission of loan forgiveness applications and loan repayment

Loan forgiveness payroll costs

• Clarifies eligibility of payroll costs incurred prior to but paid during the loan covered period and payroll costs incurred in but paid after the loan covered period
• Explains calculation of payroll costs for partial payroll periods
• Addresses eligible costs, including non-salary/wage expenses and group health care and retirement benefit costs

Loan forgiveness non-payroll costs

• Clarifies eligibility of nonpayroll costs incurred prior to but paid during the loan covered period and nonpayroll costs incurred in but paid after the loan covered period
• Discusses eligibility of various interest payments
• Identifies eligible transportation costs

Loan forgiveness reductions

• Provides clarification regarding impact on loan forgiveness reduction in light of employee reductions during the loan covered period and re-hiring efforts
• Explains the impact wage reductions may have on loan forgiveness

If you have any questions regarding your PPP loan, let us know.  We have a Coronavirus Task Force ready to help.