As business owners received their Paycheck Protection Program (PPP) loans, the big question remained on how the forgiveness portion of the loans will work. On Friday, May 15, 2020, the SBA and Treasury released the Loan Forgiveness Application.
The form and instructions explain how to apply for forgiveness of PPP loans. SBA is also expected to soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic.
Click here to view the application and instructions.
Source: Small Business Administration