PPP Loan Forgiveness Form
On May 15, 2020, the Small Business Administration issued the form for requesting forgiveness of loans under the payroll protection program (“PPP.”) The form and it’s instructions is available at: https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
The form clarifies certain provisions related to the program, including the computation of full- time equivalent employees, which is done using a 40-hour work week. The form also provides rules for the computations related to the comparison of an employer’s number of employees and the average compensation paid to employees, which compare those amounts from earlier in the year to the eight-week period following the receipt of the PPP proceeds. In addition, the form provides certain safe-harbor methods available when making these computations.