Last Updated: June 18th, 2020

Paycheck Protection Program

The Paycheck Protection Program established by the CARES Act, is implemented by the Small Business Administration with support from the Department of the Treasury.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

Information is subject to change as further guidance is issued. Please revisit this site regularly.

Loan Forgiveness

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
  • Flexibility to include eligible payroll and non-payrol expenses paid or incurred during the covered period after receiving their PPP loan.
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by December 31st.
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire worders that was declined

 

Successful Forgiveness

A successful forgiveness application is going to require good recordkeeping and bookkeeping in order to maximize your loan forgiveness amount.  Keep diligent track of all eligible expenses and their accompanying documentation.

It is recommended that you consult with your tax advisor, legal counsel, or a bookkeeping service to assist your business if necessary.

Links to Helpful Information

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