The U.S. Small Business Administration (SBA) and Treasury issued an 18-page document Tuesday detailing how Paycheck Protection Program (PPP) borrowers should calculate revenue reduction and maximum loan amounts for second-draw PPP loans. The guidance also lists the documents borrowers must provide to support each set of calculations.
The release came after SBA and Treasury issued three pieces of guidance over the weekend:
- A 12-page document detailing calculation processes and required documentation for first-draw PPP loans by business type.
- A procedural notice explaining what PPP borrowers must do if they or their lender made an application error that resulted in a borrower receiving a PPP loan amount that exceeds the borrower’s correct maximum loan amount.
- A procedural notice establishing the requirements and processes for borrower resubmission of a loan forgiveness application using SBA Form 3508S when forms 3508 or 3508EZ were previously submitted.
Read full article: https://www.journalofaccountancy.com/news/2021/jan/ppp-loan-calculations-guidance-released.html