This form can be complex, and in an effort to help businesses navigate through the forgiveness process, we have developed a tool that will walk you through the process and help calculate your forgiveness amount and other relevant information needed to complete your official form. The borrower was ineligible for the PPP loan, The borrower was ineligible for the PPP loan amount, The borrower was ineligible for any forgiveness amount claimed, was ineligible for the PPP loan amount received or used the PPP loan proceeds for unauthorized uses, is ineligible for PPP loan forgiveness in the amount determined by the lender in its full or partial approval decision issued to SBA (except for the deduction of any Economic Injury Disaster Loan advance), and/or. The information in this page is based on laws, rules, regulations, and related guidance with respect to the Paycheck Protection Program (PPP), including guidance issued by the U.S. Small Business Administration (SBA) on August 11, 2020.We will periodically update this information, so please check back often and consider bookmarking this page. Alternative Covered Period. This date is subject to extension if any new legislative amendments to the forgiveness process necessitate changes to the SBA’s system. In order to apply for loan forgiveness for the PPP program, you are required to complete the U.S. Small Business Administration Form 3508. Interest will begin when you receive your loan amount however you can defer payments of your loan principal, interest and fees until the date on which the forgiveness amount is remitted to your lender. … Find out with our Public Service Loan Forgiveness Calculator below. If an employer reduces the number of FTEs during the covered period, then the amount of loan forgiveness eligibility will be reduced proportionately. These workers are eligible to apply for PPP loans and PPP loan forgiveness as single-person businesses. Download a sample completed version of SBA.com®’s Loan Forgiveness Calculator here. Only borrowers who received their PPP loan before June 5, 2020 may elect the eight-week period*. Interest will begin to accrue when you receive your loan. However, borrowers who elect the Alternative Covered Period must apply the Covered Period wherever there is a reference to Covered Period in their loan forgiveness application. The conditions of the Paycheck Protection Program. The borrower is exempt from the reduction in loan forgiveness based on a reduction in FTE employees described above if the borrower, in good faith, is able to document that it was unable to operate between Feb. 15, 2020, and the end of the Covered Period at the same level of business activity as before Feb. 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and Dec. 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19. The expiration date in the upper-right corner of the posted PPP loan forgiveness application forms is displayed for purposes of SBA’s compliance with the Paperwork Reduction Act, and reflects the temporary expiration date for approved use of the forms. In an effort to facilitate the process for sole … Salary/wage reduction. Because the hourly wage did not change, the reduction in the employee’s total wages is entirely attributable to the FTE employee reduction and the borrower is not required to conduct a salary/wage reduction calculation for that employee. Payroll costs must be paid or incurred during your covered period. This number times 2.5 equals your PPP loan amount. Borrowers who elect to use the Alternative Covered Period must use the Covered Period for non-payroll costs. Check out the SBA site for PPP loan forgiveness FAQs. borrowers who did not reduce salaries or wages of employees by more than 25% and did not reduce the number or average paid hours of employees (with some exceptions). Payments of loan principal, interest, and fees are deferred until the date on which the forgiveness amount is remitted to your lender. In short, it’s a lot to take in. Covered Period. Be sure to consult with your bank, lender and/or qualified professional advisor and do not rely solely on the accuracy of the information inside. Use it to fill out a PPP forgiveness application online to send to your lender. Details of how this works are provided on the SBA website. For example, if an employee was paid for 30 hours per week on average during the covered period, the employee is an FTE employee of 0.75. We are a private business providing resources for small businesses, including resources for PPP loans. Non-Payroll Costs are costs paid or incurred during the Covered Period (the 24-week or eight-week period, if applicable) beginning on the date you received your loan, even if you elected the Alternative Covered Period. Payments of loan principal, interest and fees may be deferred until the date on which the forgiveness amount is remitted to your lender. 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