The PPP Loan Forgiveness Application was finally released by SBA — at 8 pm the Friday of my birthday weekend. PARTY!
You’ll find the application here:
https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
No, I have not analyzed it yet, and my birthday is this weekend, so please understand that I may not have feedback on it until Monday. (Unless it keeps me up all night obsessing over it.) Thanks for your patience!
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On page 4, the first certification requires the borrower to certify that “The dollar amount for which forgiveness is requested … does not exceed eight weeks’ worth of 2019 compensation for any owner-employee or self-employed individual general partner, capped at $15,385 per individual.”
It should instead say something like, “…does not include any amounts that exceed eight weeks’ worth of 2019 compensation ….” Because a strict reading of the current wording would preclude any certifying borrower from seeking any total forgivable amount that exceeds $15,385 multiplied by the number of owner-employees or self-employed individual general partners in the business. And for owners that did not pay themselves a salary in 2019, the certifying borrower’s total forgivable amount would be zero. This certainly was not the intention or framework of the program, but it is how the certification is worded at risks of prosecution etc.
I have to agree that it sounds like they are trying to restrict sole proprietors and partners from requesting any forgiveness beyond 8/52 of 2019 net income. It seems impossible but that’s the guidance we have so far.