Tag Archives: PPP forgiveness

PPPFA Reboots Forgiveness Rules

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On Friday, June 5, the PPP Flexibility Act (“PPPFA”) was signed, which amends the CARES Act and helps small businesses with additional options for spending and seeking forgiveness of their Paycheck Protection Program loans. Rather than write a whole new post on the changes under the PPPFA, including my rants about how late this legislation arrived to help my clients who borrowed PPP money in early April,  I’ve just edited my May 27 post to incorporate the changes.

Two weeks ago, the Small Business Administration posted interim rules and the application for employers to complete when seeking forgiveness of their Paycheck Protection Program (“PPP”) loan. This guidance provided employers with many of the answers we have been waiting for since the CARES Act was passed in March. But then the PPPFA was passed and much of that guidance is already obsolete.

But here are the current forgiveness tips based on blending what the PPPFA states and the guidance issued by the SBA two weeks ago. I summarize these for you with the disclaimer that these could change as the SBA issues new interim rules and a new application for PPPFA forgiveness.

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SBA Finally Provides PPP Forgiveness Guidance

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Late last week, the Small Business Administration posted interim rules and the application for employers to complete when seeking forgiveness of their Paycheck Protection Program (“PPP”) loan. This guidance, which for many businesses comes almost at the end of the 8-week covered period for spending PPP funds, provides employers with many of the answers we have been waiting for since the CARES Act was passed in March.

Of course, that means that this guidance may be too late for some of us to correct actions we already took when we first received the PPP funds. But there are some strategic decisions that you can still make if you act quickly.

The basics of the loan forgiveness have been explained in more detail and in layman’s language in the U.S. Chamber of Commerce’s Guide to PPP Loan Forgiveness, which I highly recommend that you download. But here are some basic forgiveness criteria that we have been waiting on:

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