The release by the SBA of the PPP forgiveness form for borrowers brought significant changes to the interpretation of some of the components of forgiveness.
Paycheck Protection Program
The U.S. Small Business Administration and The U.S. Department of the Treasury have released the
Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions.
The SBA and Treasury have announced that borrowers with an original principal amount less than $2 million “will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
The IRS has provided guidance on how loan forgiveness will work for the $659 billion in Paycheck Protection Program (PPP) loans from the two allocations made by Congress to the Small Business Administration (SBA).
Congress passed the Paycheck Protection Program and Health Care Enhancement Act, providing an additional $484 billion of coronavirus relief.
The SBA and Treasury Department continue to tweak and clarify information in the initial documentation that was released regarding the Paycheck Protection Program.
The CARES Act introduces the SBA Paycheck Protection Program and includes individual rebates, small business loans, increased unemployment benefits and tax breaks.