SBA Issues Guidance for Forgiveness of PPP Loans

SBA Nebraska District Office  - May 18, 2020

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SBA Issues Guidance for Calculating Forgiveness for PPP Loans

On Friday, May 15, the U.S. Small Business Administration in consultation with the U. S. Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the 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.

Funding is still available - apply today through your local lender! Click here to find a qualified lender near you.

Questions about the PPP? Find answers here.

Economic Injury Disaster Loan and Economic Injury Disaster Loan advance, EIDL, Coronavirus

EIDL and EIDL Advance Update

The SBA continues to process Economic Injury Disaster Loan (EIDL) applications that were in the system prior to April 15th. 

You will be notified via email about the status of your application - please continue to check your spam folder in case those email messages were filtered out of your inbox. Please note all email communication from the SBA will come from an "" email address. 

The SBA is currently only accepting new EIDL applications from agricultural-related small businesses with 500 or fewer employees.

If you have questions on the status of your EIDL application, please contact the SBA Disaster Customer Service Center at 1-800-659-2955 or via email at

Please note the SBA District Offices do not have access to EIDL applications.

PPP Updates

Please continue to check the U.S. Department of the Treasury website for PPP updates, including updated FAQs, loan reports and Interim Final Rules.