Author: Attorney Eric Klemm
- SBA Loan Forgiveness Application Released
One of the most discussed features of the PPP Loan program created by the CARES Act is that if loan recipients meet certain guidelines, the loan proceeds would be entirely forgiven, without tax, interest, or penalty to the borrower. To be eligible for forgiveness, the loan proceeds must have been spent in the 8 weeks after the loan funds were received by the borrower. On May 15, 2020 the Small Business Administration released the PPP Loan Forgiveness Application that allows borrowers to begin applying for forgiveness of their loans.
The 11-page forgiveness application contains extensive instructions on what information must be provided and how to calculate the amount eligible for forgiveness. The application also offers some flexibility regarding how to calculate when the forgiveness window begins for employers who use biweekly or more frequent payroll schedules. Additionally, it provides guidance on how to account for employees who were offered re-employment that was rejected by the terminated or furloughed employee.
Business owners should work with their accountants or other service providers to make sure all information and calculations are accurate and that the loan forgiveness form is properly completed. Doing so will ensure that loan recipients receive as much loan forgiveness as they are entitled to. The link to the forgiveness application can be found here: https://www.sba.gov/document/sba-form–paycheck-protection-program-loan-forgiveness-application.
- Governor Evers Announces New Small Business COVID-19 Resources
Some additional developing news to be aware of is that Wisconsin Governor Tony Evers announced today, May 18, 2020, that the state would be giving out $75 million to small businesses that have lost money due to the coronavirus pandemic. Some of this money will be available in the form of grants to businesses with fewer than 20 employees. Business owners may apply for the grants starting in June. The full announcement may be found here: https://content.govdelivery.com/accounts/WIGOV/bulletins/28c2d0c
Neider & Boucher will be monitoring and providing updates on this new Wisconsin business support program, so continue to check back for further updates as information becomes available.
This article was authored by Attorney Eric Klemm. Attorney Eric Klemm is a graduate of the University of Wisconsin’s School of Law and practices as part of Neider & Boucher, S.C.’s business team and is a member of the firm’s COVID-19 response team.
The guidance provided above is general in nature and readers are encouraged to reach out to Neider & Boucher, S.C., or to their own legal counsel to determine the applicability of these issues to their own personal and/or business needs.