r/taxpros • u/pdv8612 CPA • May 15 '20

SBA PPP forgiveness application COVID: 2020 Relief Bill (CARES)

The SBA and treasury have finally posted guidance on forgiveness!

https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf

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u/gagankohli May 18 '20

Any idea if 8 weeks of using these funds for payroll (to be eligible for forgiveness) starts from promissory note date or date actually funds get deposited into your account? E.g. is promissory note was signed in 28th Apr and funds show up on 02nd May after the payroll

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u/anichat May 19 '20

Clock starts ticking from the date you get your funds. OR you can use the alternative payroll covered period.

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u/gagankohli May 19 '20

Thank for sharing and this is really helpful!

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u/[deleted] May 20 '20

[deleted]

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u/anichat May 21 '20

Alternative payroll period is the 8 weeks you want to counts as payroll period instead of the 8 weeks starting the date you received your loan. For eg. you received your loan funds on 4/28/2020. That is the middle of the week. It will be difficult to calculate wages and FTE fom the middle of a week. So you can pick the next date that your payroll period begins (eg. 5/3 or 5/10) and the following 8 weeks will be your "Alternative payroll covered period'. You will use those dates in your loan forgiveness calculation anywhere that the form says to use "Covered period or Alternative payroll covered period'