Small Businesses Can Now Apply For Loan Remission For SBA Paycheck Protection Loans

0

WASHINGTON, DC (WLOX) – Small business owners and independent contractors who have received a paycheck protection loan from the SBA can now apply for debt cancellation.

The Paycheque Protection Program was created by the CARES Act to provide forgivable loans to qualifying small businesses to keep U.S. workers on the payroll during the COVID-19 pandemic.

Loan forgiveness requests through this program are now available on the US Small Business Administration website.

The form and instructions inform borrowers how to request the cancellation of their PPP loans, in accordance with the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The SBA will also soon be issuing regulations and guidelines to further help borrowers complete their applications and to provide lenders with guidance on their responsibilities.

The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options that allow borrowers to calculate salary costs using an “alternative salary coverage period” that aligns with borrowers’ regular pay cycles
  • Flexibility to include eligible salary and non-salary expenses paid or incurred within the eight week period of receipt of 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 the reduction in loan forgiveness based on re-employment before June 30
  • Added new exemption from the loan forgiveness reduction for borrowers who made a good faith written offer to rehire workers that was refused

The documents released on Monday will help small businesses apply for forgiveness at the end of the eight-week period, which begins with the disbursement of their loans.

Click here to see the application and instructions.

Copyright 2020 WLOX. All rights reserved.

Leave A Reply

Your email address will not be published.