Is Patience Truly a Virtue? The Long-Awaited PPP Forgiveness Rules (For Now)-Slide Deck

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The document provides an update on the Paycheck Protection Program (PPP) forgiveness rules as of May 26, 2020. The document states that the guidance on loan forgiveness and the loan forgiveness application have been provided. It also discusses the SBA's review process for PPP loans and the safe-harbor provision for PPP borrowers who received combined loans of less than $2 million.<br /><br />Some key issues that were not addressed by the SBA include proposals to change the 8-week calculation start date, clarification on non-mortgage business interest as a forgivable expense, and clarification on transportation costs. The document also mentions the self-reporting "Red Flag" checkbox in the forgiveness application to disclose if the borrower received PPP loans with affiliates totaling more than $2 million.<br /><br />The document provides guidance on various aspects of loan forgiveness, such as the alternative payroll covered period, payroll costs definition, compensation reporting, non-payroll costs, FTE reductions, and salary/wage reductions. It states that the SBA may review any PPP loan for eligibility, accuracy, qualified uses, and forgiveness.<br /><br />The document concludes by mentioning a bill that had bipartisan support but failed to pass before Memorial Day. The bill would provide eased restrictions, allow 24 weeks to spend PPP funds, extend the loan maturity to 5 years, exempt FTE reductions due to employee unavailability, remove the 25% limit on non-payroll expenses, and allow PPP forgiveness recipients to participate in payroll tax deferral.<br /><br />The document provides contact information for further inquiries and states that the information is based on interpretative guidance as of May 25, 2020.

Keywords

Paycheck Protection Program

PPP forgiveness rules

May 26 2020

loan forgiveness

SBA review process

safe-harbor provision

Red Flag checkbox

alternative payroll covered period

FTE reductions

Memorial Day bill