On late Friday, May 15, 2020, U.S. Department of the Treasury and SBA issued the Paycheck Protection Program Loan Forgiveness Application. The application consists of four components: (1) the PPP Loan Forgiveness Calculation Form; (2) PPP Schedule A; (3) the PPP Schedule A Worksheet; and (4) the (optional) PPP Borrower Demographic Information Form. All Borrowers must submit the PPP Loan Forgiveness Calculation Form and PPP Schedule A to their lender, while the remaining components appear to be optional.
The Loan Forgiveness Application provides instructions and guidance on several important elements of forgiveness, including the method of calculating: (1) the number of full-time equivalent employees; (2) payroll costs incurred during the covered eight (8) week forgiveness period; and (3) the reduction in an employee’s salary during the eight (8) week forgiveness period. Additionally, the Application allows employers to utilize an “Alternative Payroll Covered Period” that starts on the first day of the first pay period following their PPP Loan Disbursement in order to calculate eligible payroll costs during the eight-week forgiveness period, as opposed to starting the calculation on the date that the loan was disbursed.
If you have any questions about the Paycheck Protection Program or any other aspect of the CARES Act, please contact Josh Steele or the member of our CARES Act team with which you usually work.
Visit our COVID-19 response page for additional resources related to the pandemic.
This alert does not purport to be a substitute for advice of counsel on specific matters.
Harris Beach has offices throughout New York State, including Albany, Buffalo, Ithaca, Long Island, New York City, Rochester, Saratoga Springs, Syracuse and White Plains, as well as New Haven, Connecticut and Newark, New Jersey.