Small Business Administration's new FAQ on PPP loan forgiveness
FINANCIAL REPORTING INSIGHTS |
We have updated our white paper, Coronavirus: Financial reporting considerations to reference the new guidance provided by the Small Business Administration in its Paycheck Protection Program Frequently Asked Questions (FAQs) on PPP Loan Forgiveness. This guidance addresses a whole range of issues having to do with the forgiveness of PPP loans, such as completing the loan forgiveness application, determining whether payroll and nonpayroll costs are eligible for loan forgiveness and assessing how the forgiveness amount may be affected by workforce reductions. For additional information about how to account for PPP loans (including their forgiveness), as well as many other topics entities should consider when preparing financial statements affected by the coronavirus pandemic, refer to our white paper.