The Small Business Administration, in conjunction with the U.S. Treasury Department, has published a list of FAQs on its website to provide guidance on the forgiveness process for Paycheck Protect Program (PPP) loans.
The FAQs address the following subjects:
- Guidance on general loan forgiveness
- Payroll costs
- Nonpayroll costs
- Reductions to a borrower’s forgiveness amount.
Among other things, the FAQs also provide examples on how to calculate the amount of forgivable compensation for owners of C corporations, S corporations, self-employed Schedule C (or Schedule F) filers, general partners, and LLC members. In addition, the FAQs clarify that payments of transportation utility fees assessed by state and local governments are eligible for loan forgiveness.
According to the SBA, borrowers and lenders may rely on the FAQs.
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