New Paycheck Protection Program Loan Forgiveness
Restaurants who received Paycheck Protection Program (PPP) loans under $50,000 can now access a new forgiveness application designed to simplify the forgiveness and loan review process. This "streamlined" PPP forgiveness form does not require businesses to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process. This is not "automatic PPP loan forgiveness," as borrowers are still required to submit documentation to lenders on payroll costs, rent/lease payments, and utilities. Additionally, there is a restrictionfor any otherwise eligible applicants if they have affiliated businesses receiving PPP loans totaling $2 million or greater. The Association is following up with SBA to ensure the "Affiliation Rules" are waived for restaurants and hotels as outlined in earlier PPP Guidance (p.2).
There are three important attachments, outlined below:
- The Simpler PPP loan forgiveness application form, which can also be found here;
- The instructions for completing the simpler PPP loan forgiveness application form, which can also be found here; and,
- SBA's Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less, which can also be found here.
For more information, read the SBA's article here.