PPP Loan Forgiveness Application
The SBA released their PPP Loan forgiveness application over the weekend. We suggest reviewing the application for the items which pertain to your particular situation.
An important item to note is the maximum payroll costs allowed to be forgiven for those employees and owners with annual salaries greater than $100,000. On the original PPP Loan application the SBA used a monthly amount to cap the $100,000 annual wages of $8,333.33 per month.
With the new PPP loan forgiveness application, the SBA issued a clarification using 8 weeks for a maximum of $15,385, for those employees and owners with salaries in excess of $100,000. Therefore, any guidance originally issued with $16,666.66 as the amount allowed for forgiveness, must be adjusted down to a maximum of $15,385 of gross wages for the 8 week term, $1,281.60 less than originally thought.
As we continue to navigate the forgiveness application, please note the AICPA has requested additional clarification and detail. We would expect changes to continue, similar to the ongoing changes.