8/11/20 – SBA Releases New PPP Loan Forgiveness FAQs

In consultation with the Treasury Department, the Small Business Administration (SBA) has released a set of Frequently Asked Questions (FAQs) addressing forgiveness of Paycheck Protection Program (PPP) loans. The FAQs provide guidance on general loan forgiveness, payroll costs, nonpayroll costs, and reductions to a borrower’s forgiveness amount. Among other things, the FAQs provide examples on how to calculate the amount of forgivable compensation for owners of C corporations, S corporations, self-employed Schedule C (or Schedule F) filers, general partners, and LLC members. In addition, the FAQs clarify that payments of transportation utility fees assessed by state and local governments are eligible for loan forgiveness. According to the SBA, borrowers and lenders may rely on the FAQs. For more information, see www.sba.gov/document/support-frequently-asked-questions-ppp-loan-forgiveness .