Paycheck Protection Program Update - May 20, 2020
The Small Business Administration (SBA) has now published a Loan Forgiveness Application, which you can find here:
We encourage you to read the entire document thoroughly in preparation for your loan forgiveness application. We would like to highlight a couple of key points:
Business Owner Compensation On page 4, you see that the Borrower must certify, among other things, that the dollar amount for which forgiveness is requested “does not exceed eight weeks’ worth of 2019 compensation for any owner-employee or self-employed individual/general partner, capped at $15,385 per individual.” Further guidance on owner compensation is offered on page 5.
Full-Time Equivalency Calculations Pages 7 and 8 offer further clarification for calculating full-time equivalency (FTE), including FTE Reduction Exceptions and the FTE Reduction Safe Harbor. If you had any change in your employee count as a result of COVID-19, we encourage you to carefully read these sections and consider how your forgiveness amount may be impacted.
It is the responsibility of the Borrower to consider how these rules will apply to their unique situation. Please work with your lender to determine what documentation they will be requiring for the application process.
We are here to assist you in preparing the required documentation.