As the COVID-19 pandemic continues to setback businesses around the country and in Illinois, the businesses and organizations that were fortunate to receive Paycheck Protection Program (PPP) loans are now faced with working to secure loan forgiveness.
On August 4, 2020, the Small Business Administration (SBA) provided an update to its Frequently Asked Questions (FAQs) on the PPP to assist on the interpretation of the CARES Act and the PPP Interim Final Rules.
The FAQ is broken into the following sections:
- General Loan Forgiveness
- Loan Forgiveness Payroll Costs
- Loan Forgiveness Nonpayroll Costs
- Loan Forgiveness Reductions
Many of the questions address the revised 24-week Covered Period that came into play with the Interim Final Rules. The FAQ also addresses owner compensation specifically examining the differences that apply for C Corporations, S Corporations, Self Employed using Schedule C, Partners, and LLC Owners which has caused confusion. A number of the FAQs include examples to further illustrate how to interpret the availability of forgiveness.
For those organizations, seeking to secure the highest forgiveness amount available Selden Fox can help. If you have questions on PPP loan forgiveness not addressed in the SBA FAQs, do not hesitate to call us at 630.954.1400 or click here to contact us. We look forward to speaking with you soon.