Treasury provides PPP loan forgiveness form, instructions
PPP loan forgiveness form, instructions
The U.S. Treasury Department issued a release about the Paycheck Protection Program (PPP) loan forgiveness application and related instructions.
The PPP is one of two programs to provide approximately $900 billion to support lending to both small and large businesses pursuant to measures included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136).
The PPP loan forgiveness application and instructions [PDF 298 KB] were issued by Treasury in consultation with the Small Business Administration (the SBA administers the loan program under PPP).
The PPP loan forgiveness form and instructions provide guidance for borrowers on how to apply for forgiveness of their PPP loans. It was also reported that the SBA will soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
According to the Treasury release (May 15, 2020), the loan forgiveness form and instructions include measures that are intended to reduce compliance burdens and to simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with the borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving the PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- The addition of a new exemption from the loan forgiveness reduction for borrowers that have made a good-faith, written offer to rehire workers that was declined
As noted in the Treasury release, the PPP loan forgiveness form and instructions are intended to help eligible businesses seek forgiveness at the conclusion of the eight-week “covered period” that begins with the disbursement of their loans.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.
