On May 15, 2020, The Small Business Administration (SBA) and Treasury Department released an application for business owners to fill out in order to have their Paycheck Protection Program (PPP) loans forgiven. Click here for more info.
These PPP loans, given under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, were designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for 8 weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The form and instructions that were just released will help borrowers start the process for applying for forgiveness. The borrower is expected to complete the application and submit it to their lender.
The SBA also plans to issue regulations and guidance soon to provide further help to borrowers as they fill out their applications, and to give lenders guidance on their responsibilities. You can view the PPP loan forgiveness application here.