Treasury released an application form and guidance for small businesses to ask for their pandemic relief loans to be forgiven. The guidance addresses some payroll calculations.
Under the guidance issued late Friday, businesses will have the option to calculate payroll costs using a loan support period that matches with the applicant’s payroll schedule—a clarification that the American Institute of CPAs had wanted.
The application and guidance comes after more than 4.8 million Paycheck Protection Program loans have been approved by the Small Business Administration. The AICPA earlier this week urged the federal government to provide more guidance.
Other guidance covers the calculations needed to confirm eligibility for forgiveness and an exemption from the loan forgiveness reduction if businesses tried to rehire staff but their offer was declined.
The SBA is expected to release additional regulations and further guidance to help businesses to complete the application, Treasury said in a statement.