WASHINGTON (WAFF) – The U.S. Small Business Administration released new guidelines for those who applied for Paycheck Protection Program (PPP) assistance.
The PPP loan waiver application is now available on the SBA website.
The instructions inform borrowers how to apply for waiver of their PPP loans in accordance with the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The SBA will also shortly be issuing regulations and guidelines to further assist borrowers to complete an online loan application and to provide guidance to lenders as to their responsibilities.
The form contains several measures to reduce the compliance burden and simplify the process for borrowers, including:
- Borrower options to calculate salary costs using an “alternate pay cycle” that adapts to borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll related expenses paid during the eight week period after receiving your PPP loan
- Step-by-step instructions for carrying out the calculations required by the CARES Act to confirm the authorization to waive a loan
- Borrower-friendly implementation of the statutory exemptions from credit reduction in the event of reinstatement by June 30th
- Added a new exception to loan waiver for borrowers who submitted a good faith written offer to reinstate workers that was declined
The PPP was created by the CARES Act to provide forgiving credit to eligible small businesses to keep American workers on payroll during the COVID-19 pandemic. The documents released on Monday will help small businesses seek forgiveness at the end of the eight-week period that begins with their loans being paid off.
Click here to view the PPP Loan Waiver Application now available on the SBA website.
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