On May 15th, the Small Business Administration (SBA) released the long anticipated Loan Forgiveness Application. The next several weeks will continue to bring more guidance, and many lending organizations will be updating their systems to account for the requirements. The good news is that many outstanding questions have now been answered.
Key Takeaways from the Application
- Alternative eight-week covered period
- Answers the question regarding the inclusion of incurred or paid expenses
- Defines “full time equivalent” (FTE) as 40 hours along with an FTE reduction safe harbor
- Provision for a good-faith rehire attempt