The Small Business Administration (in consultation with the Department of the Treasury) has issued a separate set of FAQs to deal with the forgiveness component of the Paycheck Protection Program, which you can access by clicking here.
The FAQs provides some plain language direction regarding:
- Payment requirements where a borrower timely submits its loan forgiveness application;
- The inclusion of payroll costs incurred or paid during the “covered period” or the “alternative payroll covered period”
- Note that Question #2 of the Loan Forgiveness Payroll Costs FAQs states that payroll costs “incurred before the Covered Period but paid during the Covered Period” are eligible for loan forgiveness.
- Whether/in what instances borrowers are required to calculate payroll costs for partial pay periods;
- Whether to compute cash compensation using gross or net amounts – use gross amounts before deductions for taxes, employee benefits, etc.;
- The inclusion of eligible nonpayroll costs incurred or paid during the “covered period”
- What constitutes costs for “distribution of…transportation” (includes transportation utility fees assessed by state and local governments.”
The FAQs are likely to get updated as borrowers ramp up to submit their loan forgiveness applications. Genova Burns will monitor the FAQs and provide updates as soon as they are made available.
For additional guidance on the Paycheck Protection Program, please contact firm Counsel Keith A. Krauss via email here, Associate Young-Ji Park via email here or call 973.535.4441.
Tags: Genova Burns LLC • Keith A. Krauss • Young-Ji Park • PPP • Paycheck Protection Program • COVID-19 • SBA