NEW June 23

ATTENTION Paycheck Protection Program Loan Recipients: REVISED Forgiveness Application Issued

by smithamundsen

Contributed by Rebecca Dobbs Bush, June 23, 2020

As written about previously, the Paycheck Protection Program Flexibility Act, while short in text, went to great lengths in helping borrowers extend their “covered period” and maximize forgiveness.  As such, the previously issued forgiveness application needed to be revised.

Last week, on June 16, 2020, the SBA released a revised forgiveness application, a short-form and corresponding instructions for both. Generally, the short form is available for: 1) self-employed individuals; 2) those that did not reduce salaries by more than 25% and did not lay off any employees; or 3) those that did not reduce salaries by more than 25% and laid off employees, but did so because they were complying with CDC and OSHA guidance. The latter category is a new category of borrowers that no longer have to worry about prorated forgiveness. The revised applications and instructions can be found here:

Full Application

Instructions for Full Application

EZ Form

EZ Form Instructions

Specifically, the new Safe Harbor that exempts a borrower from having to worry about maintaining employee headcount is available for a borrower, that in good faith, is able to document the following:

…that it was unable to operate between February 15, 2020 and the end of the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and precision, or the Occupational Safety and Health Administration, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.

In addition to the above, the revised forgiveness application and corresponding regulations and instructions clarify that maximum “payroll costs” are revised to the following:

 

Prior to PPP Flexibility Act

Pursuant to PPP Flexibility Act

Self-employed/sole proprietors/ owners

Cash Compensation limited to: $15,385 (for an 8-week covered period)

Cash Compensation limited to: $15,385 (for an 8-week covered period) OR $20,833 (representing 2.5 months of compensation with a 24-week covered period elected)

Employees

Cash Compensation limited to: $15,385 (for an 8-week covered period)

Cash Compensation limited to: $15,385 (for an 8-week covered period) OR $46,154 (representing 24-weeks of payroll with a 24-week covered period elected)

Borrowers that intend to rely upon the new Safe Harbor should work with knowledgeable counsel to ensure adequate documentation is prepared for reference in the event an SBA audit occurs at a later date.

OTHER OLDER ILMDA Alerts 

Alert 040120

Alert 032620

UDDOL Poster 

Federated Insurance Resources

   Employers COVID-19 FAQs
   Overview of the Families First Coronavirus Response Act
   Important Rules for Employers to Know in the Wake of COVID-19 

Federal Payroll Files 
   PPP Loan Application
   PPP Borrower Information Fact Sheet

SBA Covid-19 Links 

SBA Diaster Loans

Emergency FMLA Law Update (with small business exemptions)
(Fisher Phillips Legal Alert-- March 18, 2020)

Employers May Now Take Employees' Temperatures
(EEOC Announcement-- March 18, 2020)

Coronavirus (COVID-19) and You
CDC Summary

Advice For The Public RE: CORONAVIRUS
(World Health Organization-- March 18, 2020)

Emergency FMLA Law Update (with small business exemptions)
(Fisher Phillips Legal Alert-- March 18, 2020)

How to Handle Communicable Diseases in the Workplace
(Society of Human Resource Management -- March 14, 2020)

U.S. Center for Disease Control and Prevention COVID-19 Webpage

Guidance on Preparing Workplaces for COVID-19
OSHA 3990

COVID-19 and the Fair Labor Standards Act (FLSA)

Interim Guide for Business & Employers

Stopping the Spread of Germs in the Workplace
Printable Flyer

Social Distancing Guidelines at Work
Printable Flyer

Keeping Workplace Safe
Printable Flyer

Sample Memo to Employee RE: COVID-19

My Employee Tested Positive for COVID-19, Now What?

Go to top