SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application

New Hampshire District Office - May 15th, 2020

u s small business administration

Message from our Office to you


The long-awaited application for loan forgiveness for the Paycheck Protection Program was released last night and can be accessed at the link in the below press release. We're sure there will be lots of questions and guidance needed.   Our office looks forward to working together with our partners to help our business community understand the process and utilize the funds to the best of your ability.  As information is released, we will be sharing it in these email updates and our morning webinars.   

Here are the latest National numbers for PPP – Round 2 as of 5pm last night.   There is still money available and we have several lenders willing to entertain applications from non-existing customers.   Please reach out to us if you haven’t yet applied to see if you can benefit or need a lender referral.  Our best contact is NewHampsihre_DO@sba.gov.  

Total:

2,750,904     

$194,759,656,546

 

 

 

# of Participating Lenders         

5,479

Avg Loan Size: $70,798

 


SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application

The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.

The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic.  The documents released today will help small businesses seek forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans.

Click here to view the application and instructions.


Important Changes to PPP for Seasonal Businesses and Partnerships, and Extension of Safe Harbor Rule

Allowable PPP Loan Increases for Seasonal Businesses:

To review this new Interim Final Rule, visit the Treasury website HERE

SBA’s Review of Good-Faith Certifications and Extended Safe Harbor Date:

Treasury has released an updated FAQ including two new questions offering further explanation of how SBA will review a borrowers’ required good-faith certification relative to their need for a PPP loan and extended the safe harbor date for borrowers to return funds they don’t feel they qualify for to May 18th

To review the updated FAQ document, visit the Treasury website HERE


SBA Express Loan Amount Increased and Veteran Fees Dropped

The SBA Express loan maximum has been temporarily increased to $1 million through December 31, 2020. Using a simplified application and quick decision process, SBA Express authorized  lenders can make the credit decision for the SBA. These can be term loans or revolving lines of credit.

And there's great news for Veterans – As a result of a CARES Act amendment to the Small Business Act, all SBA Express loans to veteran-owned small businesses approved on or after March 27, 2020, the upfront guaranty fee will permanently be zero. You can read the complete notice here.

Contact an SBA-approved Express lender to learn if this might be an appropriate funding option for your small business


Coronavirus (COVID-19):  Information Webinar

Join us Daily at 9 am

In response to the COVID-19 pandemic we are hosting a free daily webinar from 9 to 10 a.m. Monday to Friday to discuss  Paycheck Protection Program, the Economic Injury Disaster Loan and Advance, and Loan Options. 

Join Skype Meeting

Call in instructions:  +1 (202) 765-1264, confirmation #522409519


Information from the IRS


Resource Partners Assistance

Free assistance with reconstructing financial records, preparing financial statements and submitting the loan application is available from any of SBA’s partners:

Small Business Development Centers -NH SBDC
SCORE
Center for Women and Enterprise -CWE
Veteran’s Business Outreach Centers
or for more information 



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Ways to Connect with SBA New Hampshire:


Websitewww.sba.gov/nh
EmailNewHampshire_DO@sba.gov
Twitter: @SBA_NH