From the Office of the Governor Greg Abbott
The U.S. Small Business Administration (SBA) and Department of Treasury have released additional guidelines on Paycheck Protection Program (PPP) loan forgiveness requirements and procedures. The SBA's PPP forgiveness application and instructions form informs borrowers how to apply for forgiveness of their PPP loans, consistent with the CARES Act. The SBA also recently released Interim Final Rules (IFR) on loan forgiveness requirements and loan review procedures and borrower and lender responsibility guidelines. This guidance may be downloaded below:
PPP Forgiveness Application and Instruction Form
IFR Loan Review Procedures and Related Borrower and Lender Responsibilities
IFR Loan Forgiveness Requirements
The SBA will forgive PPP loans if the funds are used for payroll costs, interest on mortgages, rent and utilities (at least 75% of the forgiven amount must have been used for payroll). Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Small businesses may seek forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans.
The SBA is continuing to accept applications for the remaining PPP funds approved through the CARES Act. Eligible small businesses should work with an approved lender to apply for the program and should carefully review PPP regulations and certifications required to obtain a loan on the SBA’s website.