U.S. Small Business Administration Releases Application and Instructions for PPP Loan Forgiveness
The U.S. Small Business Administration (SBA) has released the application borrowers must submit to their lenders to qualify for Paycheck Protection Loan (PPP) forgiveness. The application is accompanied by several worksheets and instructional pages that provide clarity on several critical questions facing PPP loan recipients.
As reported last week, the SBA updated its Frequently Asked Questions (FAQs) (FAQ #46) confirming that “[a]ny borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
According to the SBA, this “is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans.”
According to some estimates, about half of the approximately 400 PPP loans approved for publicly traded companies were for less than $2 million.