Updated July 1, 2020
PPP Extended Five Weeks
The U.S. Senate passed a five-week extension of the Paycheck Protection Program (PPP) on Tuesday night just a few hours before the application window on the program was scheduled to close.
The move is intended to provide more time for small businesses to apply for the approximately $129 billion in PPP funding remaining. The PPP was launched in early April as the COVID-19 pandemic battered the U.S. economy and forced many businesses to close. The program provides forgivable loans that small businesses and other qualifying entities can use to cover payroll and other select costs.
The House of Representatives will have to pass the measure and President Donald Trump will have to sign it before the extension takes effect.
June 17, 2020
AICPA Forgiveness calculation steps Look over these steps to prepare for maximum loan forgiveness at the end of the 8-week covered period.
Step-by-step guide to maximizing PPP loan forgiveness for self-employed and other Schedule C filers.
NOTE: This loan forgiveness calculator is based on the original CARES Act and uses an 8-week covered period. The provisions in the Paycheck Protection Program Flexibility Act of 2020, such as the 24-week covered period and the 60% payroll/40% nonpayroll use of fund considerations, are not addressed in this resource. The Loan Forgiveness Calculator uses available guidance from the Small Business Administration and Treasury, along with interpretations of that guidance (see notes throughout) to estimate the amount of a PPP loan that may be eligible for forgiveness.
On May 15, 2020, the U.S. Small Business Administration, in consultation with the U.S Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles;
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan;
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness;
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.
The form and instructions for borrowers on how to apply for forgiveness of their PPP loans and can be viewed and downloaded here.
Webinar – Thurs, May 21, 1:30 p.m. – Navigating the PPP forgiveness application process, significant PPP changes and new guidance