WFCA releases new PPP loan forgiveness guidance

Home Categories Carpet WFCA releases new PPP loan forgiveness guidance

Dalton—The World Floor Covering Association has released the following new guidance on PPP loan forgiveness.

“For businesses that received a Paycheck Protection Program (PPP) loan, they have ten months after the end of the covered period to apply to have the loan forgiven. The covered period starts when the loan is provided and ends either eight or 24 weeks later. For PPP loans received before June 5, 2020, the borrower can elect either the eight week or 24 weeks, and for all other PPP loans the covered period is 24 weeks.

The application to have the PPP loan forgiven has been complicated. The borrower must calculate whether the amount forgiven must be adjusted for a reduction in the number of full-time equivalent (FTE) employees and for reductions if wages of any employee were cut by more than 25%. In addition, the allowable costs for rent, utilities and other allowable costs has to be documented and allocated over the eight- or 24-week covered period. The loan forgiveness applications require the business to submit these calculations to determine how much of the loan should be forgiven. (An explanation of the PPP loan forgiveness requirements are on the WFCA website at: Loans and Grants and FAQS on Paycheck Protection Program Loans.)

There is now some relief for businesses that borrowed $50,000 or less under the PPP. The Small Business Administration (SBA) has issued a simpler loan forgiveness application for these small PPP loans. The new forgiveness form reduces the administrative burden of what was needed to calculate the amount of the PPP loan to be forgiven. Under the new form, borrowers of a PPP loan of $50,000 or less will no longer have to do the following:

  • There will be no reduction in loan forgiveness for a reduction in the number of FTE employees the borrower has on its payroll, so there is no need to make this calculation.
  • There will be no reduction in loan forgiveness if salaries/wages are reduced by more than 25%, and the borrower will no longer be required to calculate whether every employee’s salary or wages were reduced and how overtime may impact the calculation.
  • There will be no need to report any employee information on the simplified application.
  • Borrowers do not have to make any calculations of their loan forgiveness amount on the form, and can simply input their loan forgiveness amount on the “honor system.” While the documents and calculations do not need to be provided in the application, the records supporting the forgiveness should be retained in the event of an audit.

Owners of multiple businesses who received $50,000 or less in PPP loans for a business can still use the simpler form for each business under $50,000, so long as together with its affiliates, total loans received is less than $2 million. The new simpler loan forgiveness application form can be accessed here, and the instructions for completing the application can be accessed here.

WFCA is advocating for legislation that would allow for larger loans to be automatically forgiven and will provide updates on any new guidance or legislation. In the meantime, please feel free to send your concerns or questions directly to jeffw@jkingesq.com and mperkins@lobbyit.com.”


Notice: The information contained in this update is abridged from legislation, court decisions, and administrative rulings, and should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.

Must Read

LSI Flooring acquires pad business, updates website

New York, N.Y.—After expanding nationally in 2021, LSI Flooring —a national flooring products, sales and marketing agency —took over Daltonian Flooring’s carpet and rug...

Happy Feet unveils new Made in USA collection

Chattanooga, Tenn.—Happy Feet International introduced its newest Made in the USA product, Liberty Bound. The rigid core LVP, known as SPC core, makes Liberty...

Floor & Home makes a bold ‘Statement’

Spokane, Wash.—When Daltile took the wraps off Statements 2.0 a little more than a year ago, the company knew it had to convince retailers...

AHF Products finalizes Armstrong Flooring purchase

AHF Products’ $107 million purchase of Armstrong Flooring was finalized on July 26, bringing to close a tenuous period of negotiations over the past...

Tips for selling to stressed-out homeowners

As economic uncertainty continues, homeowners are increasingly nervous about taking on flooring projects. There is an entire generation of homeowners who have no experience...

My take: Get back to work!

Wherever I go in business, whomever I speak with, the conversation inevitably gravitates to one topic: labor/people. No one can find enough of ’em...
Some text some message..
X