PAYCHECK PROTECTION PROGRAM (PPP) FORGIVENESS PROCESS
On June 5, 2020, the President of the United States signed into law the Paycheck Protection Program Flexibility Act of 2020 (PPPFA). This act revises the existing rules related to Paycheck Protection Program (PPP) loan forgiveness. Highlights of the act as it relates to loan forgiveness include:
- Requiring 60% of the covered loan amount be used for eligible payroll costs (previously 75%).
- Extending, at the borrower’s option, the covered period to use the funds from 8 weeks to 24 weeks.
- Extending the deadline to rehire workers from June 30, 2020 to December 31, 2020.
- Extending the payment deferral period.
Although generally described above, we encourage you to refer to the Interim Final Rules governing the program and SBA’s Frequently Asked Questions to ensure adherence to the program’s forgiveness eligibility requirements. We recommend borrowers consult with their tax advisor, attorney, or business advisor, as appropriate in determining the appropriate time to submit an application for PPP loan forgiveness.
The revised rules are currently incomplete as there are significant undefined steps to the Forgiveness process. We expect, and are preparing for, additional guidance soon. In anticipation of the procedural rules being issued and to facilitate the forgiveness application process, we encourage all PPP borrowers to:
- Review the SBA’s forgiveness rules and guidance;
- Determine which application form should be used for your business and familiarize yourself with the appropriate application form. Refer to the instructions for each application to determine your eligibility for use of the form
- Begin to gather SBA required supporting documentation, and
- Consult with your tax advisor, attorney, or business advisor, as appropriate.
How to Apply for Forgiveness
Submit the completed application, worksheets and documentation to NVE by requesting a link to our secure portal:
Please be sure that at least eight weeks have passed since you received your PPP loan funding. Our PPP Forgiveness Team is available to assist with any questions. Please contact us at firstname.lastname@example.org.