Paycheck Protection Program: SBA Issues Long Awaited Guidance on Loan Forgiveness and Review Procedures

On Thursday, May 28, 2020, Crowell & Moring LLP will present its latest webinar on the Paycheck Protection Program (PPP), covering key guidance from the Small Business Administration and Treasury on loan forgiveness eligibility and procedures for SBA’s loan review. 

We will discuss the Interim Final Rules issued by the Small Business Administration and Treasury which provide more detail on which payroll and non-payroll expenses are eligible for forgiveness, how such expenses should be calculated and the applicable timelines for determining the eligible forgiveness amount, how mandatory reductions to the eligible forgiveness amount will be calculated, and how to avoid such reductions through rehiring employees and restoration of salaries and wages.  We will also discuss the application submission process for seeking loan forgiveness, including the documentation that must accompany such applications.  In addition, we will address SBA’s and the lender’s role in reviewing individual PPP loans, the anticipated timeline for lender and SBA loan review and forgiveness decisions, and practical tips to prepare for these reviews.  

Crowell & Moring continues to monitor PPP developments and is standing by to help navigate the Application for Forgiveness.