PPP Update: Loan Forgiveness Application is Open

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


The Small Business Administration (SBA) recently posted the Paycheck Protection Program (PPP) Loan Forgiveness Application, which is available here. Before applying, it’s important that PPP recipients understand the nuances and technicalities of the application, which we’ve outlined below.

  • Borrowers must complete the application and submit it to their Lenders, which can be done electronically.
  • The eight week (56-day) Covered Period of PPP loans begins on the PPP Loan Disbursement Date.
  • Borrowers with a biweekly or more frequent payroll schedule may elect to calculate eligible payroll costs based on an “Alternative Payroll Covered Period.”
  • Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period are eligible for forgiveness if paid on or before the next regular payroll date.
  • For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period.
  • Eligible nonpayroll costs, including covered mortgage interest, rent and utilities, must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.
  • Eligible nonpayroll costs cannot exceed 25% of the total forgiveness amount.
  • Full Time Equivalents (“FTEs”) are considered employees who work 40 hours per week.
  • FTE Reduction Safe Harbor employee levels are based on the number of FTEs as of June 30, 2020.
  • The application’s expiration date is Oct. 31, 2020.

COVID-19 assistance programs like the PPP Loan Forgiveness Application 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 application.

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