PPP Loan Update – May 20, 2020

In the event your business applied for and received a PPP loan, there were two developments last week that address some lingering questions.

  • First, the SBA/Dept of Treasury issued a Q&A that creates a safe harbor, for borrowers of less than $2 million under the PPP program, regarding whether or not the money was actually needed.  For your reference, you can click here for the details of the answer.
  • Second, the SBA published a sample application form for loan forgiveness, which provides some details as to the periods to be used to calculate payroll costs as well as other items you will need to provide in order to get the loan forgiven. You can view the sample application here.

Also, it has been reported that there is still money available under the expanded PPP loan program, so it is not too late to apply if you have not already done so.

As always, feel free to call SSEG if you have questions about this or appropriate policies, practices and procedures for operating in the ongoing COVID-19 environment.