PP&Co News

PPP Loan Forgiveness FAQs Released

Paycheck Protection Program PPP Loan forgiveness application form.

Recently the SBA, in consultation with the Treasury Department, released a 10-page document providing answers to 23 FAQs related to PPP loan forgiveness. The FAQs were segregated into the following four categories:  

  • General Loan Forgiveness
  • Loan Forgiveness Payroll Costs
  • Loan Forgiveness Nonpayroll Costs
  • Loan Forgiveness Reductions

Addressing the FAQs is timely, as the SBA began accepting PPP loan forgiveness applications on August 10th (subject to any legislative changes enacted by Congress).  

There may be good reasons to wait to process your loan forgiveness application beyond August 10th.  Congress is contemplating further changes to the PPP loan program that may make applying for forgiveness easier for certain borrowers and may allow additional expense categories – such as personal protective equipment – to qualify for forgiveness (be mindful that the SBA has not made it fully clear what will happen if the number of your full-time employees (FTEs) is reduced AFTER the submission of the early application). You may want to delay applying for forgiveness if the following apply:   

  1. you still have PPP loan proceeds to spend,
  2. you have not spent at least 60% of the proceeds on payroll costs,or  
  3. you have reduced full time equivalent employees and/or employee hours worked.

However, if you have spent all of your PPP loan proceeds on qualified expenditures and your forgiveness amount will not be reduced, you may want to apply for forgiveness sooner rather than later.    

The bottom line is this… there is no one right answer to the question of when a company should apply for forgiveness.  Each situation is unique.  PP&Co has tools to help determine what costs can be included in the forgiveness applications and how much can be forgiven.  Whenever you decide to apply for forgiveness, these tools can be linked to your forgiveness application to simplify the process.    

Have questions or need help? We’re here for you. Contact us at info@ppandco.com or (408) 287-7911 for assistance. For more information and updates, check out our COVID-19 Resources & Updates webpage.