Guidance for Loan Forgiveness for Paycheck Protection Program
The Small Business Administration and Treasury Department released guidance for employers that are seeking loan forgiveness under the Paycheck Protection Program. Businesses need to complete an application and submit it to their lender. The application includes four sections including:
1. PPP loan forgiveness calculation form
2. PPP Schedule A
3. PPP Schedule A worksheet
4. PPP Borrower Demographic Information form (optional)
The Treasury Department has also clarified how to count foreign employees and foreign affiliates for PPP eligibility. You can read the rule here, which says that applicants must count all U.S.- and foreign-based employees, including those of their domestic and foreign affiliates, to determine if they meet the PPP’s size tests. However, note that the Small Business Administration will not apply the new standard to applicants that applied before May 5, provided that the business and its affiliates have no more than 500 employees whose principal place of residence is in the United States.