PPP Loan Forgiveness Application Released

The Small Business Administration and U.S. Treasury Department have released an application for business owners to have their Paycheck Protection Program loan forgiven. Real estate professional who received a PPP loan should complete and submit the application, which was released Friday, to their PPP lender.

The program was created through the CARES Act to provide forgivable loans to eligible small businesses during the COVID-19 pandemic. The PPP is a way to offer financial aid to small businesses and incentivize them to keep employees on their payrolls. The SBA outlines the form and instructions, including some of the following measures:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
  • Flexibility to include eligible payroll and nonpayroll expenses paid or incurred during the eight-week period covered by the PPP loan.
  • Instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
  • Addition of a new exemption for borrowers who have made a good-faith, written offer to rehire workers that was declined.

Source: "PPP Loan Forgiveness Application Released"