Has your business borrowed less than $50,000 under the Paycheck Protection Program?
If so, you may now apply to have your loan forgiven. The Small Business Administration (SBA) recently released the long-awaited loan forgiveness application form. This form allows borrowers that received $50,000 or less to submit an application to have their loan forgiven.
The form itself is simple to fill out and does not require the applicant to submit documentation. But by filing the application the borrower certifies the loan proceeds were used and documented properly. Below are a few of those requirements:
- payroll and non-payroll costs have been accurately verified;
- payroll costs were equal to at least 60% of the forgiveness amount;
- owner-employees’ pay did not exceed the allowed limits;
- the tax documents were submitted properly; and
- the required documentation verifying payroll and non-payroll costs were previously submitted.
While the borrower does not need to submit the documentation verifying the figures in its application, it must retain the documentation for six years.
Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, but loan payments may be required sooner.
Satisfying all of the above requirements may be complicated. The attorneys at Critchfield have made it a priority to stay up-to-date and achieve a thorough understanding of new guidance as it is released. We would be happy to guide you through this process. For more information or to discuss circumstances that are unique to your organization, please call us at one of our five locations.