Time flies during a shutdown. While some are still hesitating to apply or wait to receive funds provided under the paycheck protection program, for some it is time to prepare applications for forgiveness.
To that end, on May 15, 2020, U.S. Department of the Treasury issued the Paycheck Protection Program Loan Forgiveness Application. The Loan Forgiveness Application provides instructions and guidance on several important elements of forgiveness, including the method of calculating the number of full-time equivalent employees; payroll costs; and the reduction in an employee’s salary during forgiveness period.
Additionally, the Application allows employers to utilize an “Alternative Payroll Covered Period” that starts on the first day of the first pay period following their PPP Loan Disbursement in order to calculate eligible payroll costs during the eight-week forgiveness period, as opposed to starting the calculation on the date that the loan was disbursed.
This alert does not purport to be a substitute for advice of counsel on specific matters. Should you have any questions or concerns, please feel free to contact us, we are here to assist!
