Author: Lindsey Jackson
On Tuesday, August 4th, the SBA released an FAQ specifically related to the PPP loan forgiveness process. A copy of the full document may be found here.
Similar to the FAQs for the initial application, we anticipate that over the coming weeks the SBA will continue to build and expand this file to include additional guidance. Currently, the FAQ addresses the following topics:
- General forgiveness
- Payroll Costs
- Nonpayroll Costs
- Forgiveness Reductions
Many of the FAQs are items that have been addressed in previously released guidance, however there are a few additional noteworthy items.
- As long as a borrower submits its loan forgiveness application within 10 months of the completion of their covered period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by the SBA.
- For purposes of calculating cash compensation borrowers should use the gross amount before deductions for taxes, benefits, and other similar payments.
- Specific examples of how to calculate eligible owner compensation for S-Corporations, general partners, LLC owners, and self-employed Schedule C and F filers.
- Qualifying nonpayroll costs in the transportation category are defined as transportation utility fees assessed by state and local governments.