Tony Nitti, one of the country's best financial writers, published an instructional article yesterday for Forbes. It walks through the Paycheck Protection Program loan forgiveness application step by step, and the article includes explanatory examples along the way. If you received a PPP loan, you will want to keep this as a reference. The link to the full article is at the bottom of the post.
1. Narrative-based guidance, similar to previously issued interim final rules, which ideally would clear up much of the confusion surrounding critical definitions, from what items are included in payroll costs to the treatment of guaranteed payments or self-rental payments.
2. Detailed blueprints for constructing a fully functioning time machine, so nearly two million small business owners could magically transport back to a time when this forgiveness guidance would actually be useful.
Lest you think that second item is a tad harsh, consider this: The application confirms (with one small exception) that only those expenses paid within the 8-week period after receiving the loan are eligible for forgiveness. Many borrowers, however, are already half-way through that 8-week period, meaning even if this most recent guidance were complete – and it is far from it – it would still be entirely too late.
Nevertheless, we’ll play the hand we’re dealt, and if this is what the application for forgiveness is going to look like, we may as well figure out how to fill it out. After all, we can always come back and fill in the blanks as more guidance inevitably trickles out from the SBA or Treasury.
And you know what? Because I struggle with pattern recognition, I’m going to give the SBA the benefit of the doubt. There HAS to be more coming that this. As a result, I’m not going to devote space in this article to highlighting all of the things we still DON’T know; rather, I’ll focus on what the application tells us, and trust that I’ll soon be updating this article for the bevy of guidance still to come.
So let’s get to it, and because this application will be used millions of times by borrowers both big and small, we’re going to do this in painstaking detail; as in, line-by-line detail.
SBA Releases Paycheck Protection Program Loan Forgiveness Application: A Deep Dive
SBA Releases Paycheck Protection Program Loan Forgiveness Application: A Deep Dive
Forbes
May 16, 2020 1:59pm EDT
Tony Nitti, Senior Contributor
On Friday, May 15th, the Small Business Administration (SBA) released the application borrowers of a Paycheck Protection Program (PPP) loan must use to determine the amount of the loan that may be “forgiven” by their lender. While the application included instruction, the SBA failed to provide two additional items that would have greatly benefited borrowers:
1. Narrative-based guidance, similar to previously issued interim final rules, which ideally would clear up much of the confusion surrounding critical definitions, from what items are included in payroll costs to the treatment of guaranteed payments or self-rental payments.
2. Detailed blueprints for constructing a fully functioning time machine, so nearly two million small business owners could magically transport back to a time when this forgiveness guidance would actually be useful.
Lest you think that second item is a tad harsh, consider this: The application confirms (with one small exception) that only those expenses paid within the 8-week period after receiving the loan are eligible for forgiveness. Many borrowers, however, are already half-way through that 8-week period, meaning even if this most recent guidance were complete – and it is far from it – it would still be entirely too late.
Nevertheless, we’ll play the hand we’re dealt, and if this is what the application for forgiveness is going to look like, we may as well figure out how to fill it out. After all, we can always come back and fill in the blanks as more guidance inevitably trickles out from the SBA or Treasury.
And you know what? Because I struggle with pattern recognition, I’m going to give the SBA the benefit of the doubt. There HAS to be more coming that this. As a result, I’m not going to devote space in this article to highlighting all of the things we still DON’T know; rather, I’ll focus on what the application tells us, and trust that I’ll soon be updating this article for the bevy of guidance still to come.
So let’s get to it, and because this application will be used millions of times by borrowers both big and small, we’re going to do this in painstaking detail; as in, line-by-line detail.
But first, let’s remember what this is all about….
Follow the link below to the rest of the article, which is long, but is critically important.
SBA Releases Paycheck Protection Program Loan Forgiveness Application: A Deep Dive
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