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How does a business apply for forgiveness of a Paycheck Protection Program (PPP) loan?
The Paycheck Protection Program created by the CARES Act includes a provision that loans will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities, provided the business maintains their payroll at a level equal to what it was before the Coronavirus impacted the business.
On May 15, 2020, the US Small Business Administration (SBA) released the Loan Forgiveness Application form.
To apply for loan forgiveness, businesses should submit the completed application to the lender that is servicing the loan, along with the required supported documentation, which is detailed in the forgiveness application form.
Businesses should consult with their financial advisor before applying for loan forgiveness.
The US Department of the Treasury has a Paycheck Protection Program web page that includes several helpful resources, including a Paycheck Protection Program Factsheet for Borrowers that provides even more detail.
The US Small Business Administration (SBA) has a Paycheck Protection Program web page that provides information on the program, who can apply, how to apply, loan details and forgiveness, and more.
Claremont Insurance Services and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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