Paycheck Protection Program – Forgiveness Application

May 28, 2020

The Small Business Association (SBA) released its Loan Forgiveness Application for the Paycheck Protection Program (PPP) loan.

The chart below highlights each of the PPP loan provision modifications:

 

Provision	Original PPP Loan Provision	Updated PPP Loan Provision
Loan term/maturity (excess left after loan forgiveness)	2 years	5 years
Loan – Covered Period	2/15/2020 – 6/30/2020	2/15/20 – 12/31/20
Loan Forgiveness – Covered Period	8 weeks from disbursement of funds	The earlier of 24 weeks from disbursement of funds or 12/31/20 (borrowers receiving loans prior to 6/5/20 may elect, i.e. keep the original 8-week covered period)
Payment Deferral	6 months from the end of the covered period	Must submit loan forgiveness application within 10 months after the last day of the covered period
Loan Forgiveness Reduction Based on Reduction in Full-Time Equivalent (FTE) Employees	Waived if number of FTE employees is restored by 6/30/20	Waived if number of FTE employees is restored by 12/31/20 or qualify for the Exemption Based on Employee Availability*
Loan Forgiveness Limitation	75% of the loan forgiveness amount must be attributable to payroll costs	Must use at least 60% of the covered loan amount for payroll costs

*Exemption Based on Employee Availability.