This article is current as of 5/20/20. The SBA has indicated that there will be constant, ongoing updates.
Many businesses have been fortunate enough to receive funds via the Paycheck Protection Program (PPP). These funds were initially disbursed as a loan, but some or all of the funds can potentially be forgiven. How much really depends upon a complex, and ever evolving set of rules (the first real guidance was release of SBA Form 3508, the forgiveness application, Worksheet A and instructions issued 5/15/2020).
The forgiveness application and instructions are not very straightforward, nor simple. The big take away from this article is that you should really be working with someone to discuss your situation, optimize your forgiveness, and to help you calculate and assemble the support for your forgiveness applications. Any mistakes on the forgiveness side of things could end up being very expensive.
Forgiveness in a Nutshell
When you receive your funds, your eight week (known as the covered period) forgiveness time clock begins ticking. For companies with bi-weekly or more frequent payroll, there is an alternative 8 week option which starts with the first day of the next pay period that begins after you’ve received your funds. However, the optional coverage period only applies to the payroll portion of eligible expenses while the initial coverage period applies for all other eligible expenses.
Potential eligible expenses include:
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