Paycheck Protection Program (PPP) Loan Forgiveness FAQ
The Paycheck Protection Program (“PPP”) is one of the most important provisions for small businesses in the new $2 trillion Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). Critically, it provides a mechanism for loan forgiveness of up to the full amount of principal and interest where the borrower can demonstrate that the loan proceeds were used for payroll and related costs. Questions and confusion abound, however, over PPP loan forgiveness, including maintaining and proving compliance and applying for forgiveness. Questions also surround understanding the ways in which forgivable amounts may be reduced or even eliminated entirely.
Click here for a FAQ chart designed to answer the most common questions we have received from our clients and colleagues regarding loan forgiveness under the PPP loans. The FAQ does not address other new and existing loan programs administered by the Small Business Administration, including the Economic Injury Disaster Loan Program (EIDL).
This FAQ is intended to offer high-level answers to common questions about PPP loan forgiveness. It does not contain or constitute a legal analysis of PPP loans, or an assessment of their suitability for any particular client or group of clients. If you have further questions, please feel free to contact us to discuss.