ECFA Provides Update on Paycheck Protection Program (PPP)
Late on Friday, May 15, the Small Business Administration (SBA) issued the long-awaited forgiveness application for Paycheck Protection Program (PPP) loans along with a related schedule, a related worksheet, and instructions. The loan forgiveness application, together with its related schedule, worksheet, rules, safe harbors, calculations, and options, rivals a federal income tax return in its complexity.
Some PPP borrowers are already several weeks into the eight-week period during which the PPP loan funds must be spent (under current guidance) in order to qualify for forgiveness. Borrowers have been anxiously awaiting official guidance to clarify numerous unanswered questions about how the forgiveness process will work and how the forgiveness amount will be calculated. The SBA issued additional guidance in the form of an “Interim Final Rule” on May 22. It is possible that the SBA could issue more guidance further clarifying technical questions, and Congress could still act to modify fundamental elements of the forgiveness process.
For more information on the PPP and other important COVID-19 resources, check the ECFA website frequently. Access ECFA online via www.jesusisthesubject.org/theway or directly at https://www.ecfa.org/Content/ECFA-COVID-19-RESOURCES.