PPP Update: Interim Rules & Loan Forgiveness Calculator

Please note: This blog is current to the date of its publication, Thursday, May 28. For additional updates or assistance navigating these uncertain times, please contact us or visit our SST COVID-19 resource page.


On May 22, the Small Business Administration (SBA) released two interim rules on Paycheck Protection Program (PPP) loan forgiveness, as well as review procedures and related borrower and lender responsibilities.

The PPP loan forgiveness interim rules clarify that non-payroll costs will be calculated during the 8-week period following loan disbursement, even if the borrower elects to calculate payroll costs under an alternative payroll-covered period.

The American Institute of CPAs (AICPA) has updated its PPP loan forgiveness calculator, available to download at the link below, to reflect these changes.


Additionally, the recent PPP loan review rules provide the following clarifications:

  • The SBA may review any PPP loan, as the Administrator deems appropriate, for borrower eligibility, loan amounts, use of proceeds and loan forgiveness amounts at any time at the discretion of the SBA.
  • Any borrower, through the SBA review process, deemed ineligible to receive a loan or loan forgiveness has the opportunity to respond with additional information.
  • If the SBA determines a borrower is ineligible for PPP funding, the loan will not be forgivable, and the SBA may also seek repayment of the loan.

In addition to the interim rules, Congress is currently considering extending the 8-week period during which PPP funds must be spent to qualify for forgiveness, as well as a reallocation of the 75% payroll/ 25% non-payroll allocation of forgivable amounts, as noted in this article by the Journal of Accountancy.

COVID-19 assistance programs like the PPP are comprehensive and can be complex to navigate, but SST is here to help. We’re closely monitoring any updates and encourage you to contact us with any questions, concerns or help filling out your loan forgiveness application.

Thanks to SST Partner Emily Cook for providing the content for this blog post. Click here to learn more about Emily.