On August 4th, the U.S. Small Business Administration (SBA) released additional guidance regarding forgiveness of Paycheck Protection Program (PPP) loans. In consultation with the U.S. Department of the Treasury, the SBA added 23 new questions to their PPP FAQ page.
The SBA sorts the new loan forgiveness FAQs into the following four categories:
1. General Guidance – The first three FAQs cover broad subjects: which forgiveness application should be used by sole proprietors, independent contractors, and self-employed individuals without employees; whether it is acceptable for PPP lenders to accept scanned documents and E-signatures; and whether borrowers should make loan payments between the time that they submit their forgiveness application and the SBA approves or denies their forgiveness amount.
2. Payroll Guidance – This second category comprises eight questions. These FAQs cover specifics about which payroll costs are eligible for PPP loan forgiveness and how borrowers should go about calculating the payroll portion for their loan forgiveness application.
3. Nonpayroll Guidance – The next seven questions address how borrowers should calculate the nonpayroll portion of their loan forgiveness application, including some specifics about which nonpayroll costs do and do not qualify.
4. Reduction Guidance – The new FAQ ends with five questions regarding loan forgiveness reductions, including what borrowers should do about laid off employees who declined to be rehired.
For full details, click here to read the new SBA PPP FAQs.