PPP Loan Forgiveness & FAQs Update
Below you will find a link to our updated FAQ document incorporating the new/updated information contained in the Forgiveness Application. We strongly recommend that you review the updated FAQ over the next couple of weeks. However, there are some very important changes we wanted to bring to your attention. Please note that these bullet points are just a high level summary of complex information. Please refer to the FAQ for full details.
- Alternative Payroll Covered Period: Borrowers with a biweekly (or more frequent) payroll schedule may elect to use what the SBA is calling an “Alternative Payroll Covered Period”. This allows borrowers to begin calculating their 56 day payroll coverage on the first day of their first pay period following their PPP loan disbursement date. This should be of great benefit to any Borrower who has a biweekly payroll schedule. Please note the Alternative Payroll Covered Period only applies to payroll costs. Nonpayroll costs are still subject to the standard 56 day covered period beginning on the disbursement date.
- Incurred costs paid after the end of the Covered Period: The SBA will allow costs incurred during the Covered Period, but paid after the end of the covered period, to be eligible for forgiveness, subject to limitations.
- Payroll Costs: Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date.
- Nonpayroll Costs: Nonpayroll costs incurred during the Covered Period are eligible for forgiveness if paid on or before the next regular billing date, even if the billing date is after the Covered Period.
- Documents required to be submitted with the Forgiveness Application: The SBA listed all documentation that would be required to be submitted with the Forgiveness Application. This includes documentation related to: Payroll Costs, FTE, and Nonpayroll Costs.
Golden Valley Bank will be scheduling webinars in the near future to cover the Forgiveness Application. We will send out registration information for the webinars in the near future.
As with most things related to the PPP, the Forgiveness Application will likely change. We will continue to communicate timely information as we are made aware to help you maximize your amount eligible for forgiveness.