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The U.S. Small Business Administration (SBA), in consultation with Treasury, in July 2020 released a revised loan forgiveness application for the Paycheck Protection Program (PPP). The SBA also unveiled a new EZ application for the forgiveness of PPP loans. The applications reflect changes to the PPP made by the Paycheck Protection Flexibility Act of 2020, which became law June 5, 2020.

The releases came only hours after the SBA issued a new interim final rule providing guidance on how to calculate employee and owner compensation for loan forgiveness in the new 24-week covered period created by the Paycheck Protection Flexibility Act. Congress passed the Paycheck Protection Flexibility Act to make it easier for small businesses and other PPP borrowers to qualify for full loan forgiveness. Among the changes in the act are:

  • An expansion of the “covered period” for loan forgiveness to 24 weeks from eight weeks.
  • A reduction of the proportion of proceeds that must be spent on payroll costs to 60% from 75%.
  • The establishment of a safe harbor for businesses that have been unable to return to the level of business activity they had before the COVID-19 pandemic due to compliance with health and safety guidelines for slowing the spread of the virus.

PPP funds are available to small businesses that were in operation on Feb. 15 with 500 or fewer employees, including not-for-profits, veterans’ organizations, Tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. Businesses with more than 500 employees in certain industries also can apply for loans.

Congress approved $349 billion in PPP funding. After that money was quickly exhausted, Congress authorized another $310 billion, bringing the program total to $659 billion. As of 5 p.m. ET Tuesday, the SBA had approved more than 4.6 million loans totaling $513 billion.

Who Should Attend:
Accountants and Finance professionals.
Internal auditors/Professionals considering the role of internal audit.
Legal and Compliance professionals.

Topics Covered:
This course is designed to walk through and discuss the many concepts involved in the SBA PPP Loan Forgiveness application. We also cover areas of the revised PPP Loan Forgiveness Application and instructions include a number of notable items including:

  • Health insurance costs for S corporation owners.
  • Safe harbors for excluding salary and hourly wage reductions and reductions.
  • Change in the covered payback period.
  • Amounts allowable for inclusion in PPP forgiveness.
  • Owner compensation replacement calculations.
  • Term of the PPP.
  • The new E-Z application details.

Learning Objectives

  • Discover and determine which forgiveness application to use.
  • Explore and examine how to estimate your PPP loan forgiveness.
  • Explore how to determine your covered period.
  • Identify and understand what incorporates eligible payroll costs.
  • Explore the SBA PPP Forgiveness form and instructions and how to utilize them.
  • Identify and understand the overall process and requirements for documentation.
  • Explore and examine unique elements of the PPP forgiveness process.
Last updated/reviewed: February 16, 2021

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  7:59Introduction to Payroll Protection Program and Forgiveness Calculation Update
  5:10Background
  12:04Payroll Protection Program First and Second Draw Loans
  15:25Form and Basics
CALCULATIONS
  13:49Payroll Protection Program Form and Calculations-Part 1
  11:47Payroll Protection Program Form and Calculations-Part 2
  6:48Payroll Protection Program Form and Calculations-Part 3
  12:53Payroll Protection Program Form and Calculations-Part 4
  6:16Examples
  3:58Summary and Appendix
  7:52Required Documents
CONTINUOUS PLAY
  1:44:01Payroll Protection Program and Forgiveness Calculation Update
SUPPORTING MATERIAL
  PDFSlides: Payroll Protection Program and Forgiveness Calculation Update
  PDFPayroll Protection Program and Forgiveness Calculation Update Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM