On late Friday, May 15, 2020, U.S. Department of the Treasury and SBA issued the Paycheck Protection Program Loan Forgiveness Application. The application consists of four components: (1) the PPP Loan Forgiveness Calculation Form; (2) PPP Schedule A; (3) the PPP Schedule A Worksheet; and (4) the (optional) PPP Borrower Demographic Information Form. All Borrowers must submit the PPP Loan Forgiveness Calculation Form and PPP Schedule A to their lender, while the remaining components appear to be optional.

The Loan Forgiveness Application provides instructions and guidance on several important elements of forgiveness, including the method of calculating: (1) the number of full-time equivalent employees; (2) payroll costs incurred during the covered eight (8) week forgiveness period; and (3) the reduction in an employee’s salary during the eight (8) week forgiveness period. Additionally, the Application allows employers to utilize an “Alternative Payroll Covered Period” that starts on the first day of the first pay period following their PPP Loan Disbursement in order to calculate eligible payroll costs during the eight-week forgiveness period, as opposed to starting the calculation on the date that the loan was disbursed.