SBA Releases Paycheck Protection Program Loan Forgiveness Application – Duane Morris
On May 15, 2020, the Treasury Department and Small Business Administration (SBA) released the Loan Forgiveness Application for the Paycheck Protection Program (PPP). Borrowers are required to complete the application and submit it to their lenders in order to apply for loan forgiveness. This Alert discusses the Loan Forgiveness Application, as well as some clarifications regarding the rules for loan forgiveness contained within the application.
Outside of the guidance and additional information provided in the Loan Forgiveness Application, the SBA still has not released further rules or guidance on the PPP loan forgiveness process, and many questions remain unanswered.
General Overview
The Loan Forgiveness Application contains four components for PPP loan borrowers to complete and submit to their lender: (i) the PPP Loan Forgiveness Calculation Form, (ii) the PPP Schedule A, (iii) the PPP Schedule A worksheet, and (iv) the optional PPP Borrower Demographic Information Form.
The application requires borrowers to provide routine information in connection with their PPP loans, including such items as the SBA and lender PPP loan numbers, the total PPP loan amount and the name and address of the borrower.