PPP forgiveness guidance issued as Congress mulls changes

From Journal of Accountancy.

Treasury and the U.S. Small Business Administration (SBA) released new Paycheck Protection Program (PPP) guidance Friday night that provided some clarity on several loan forgiveness questions but didn’t address the two parts of PPP that arguably have generated the most concerns among the millions of small businesses and other entities that have received funding.

Two new interim final rules issued late Friday build upon the loan forgiveness application and instructions released May 15 but they don’t make changes to either the eight-week period during which PPP funds must be spent to qualify for forgiveness or the rule requiring PPP borrowers to spend at least 75% of the funds on payroll costs to qualify for full loan forgiveness.

Those two issues are the focus of multiple bills being considered in Congress.

See the complete article from Journal of Accountancy online.