SBA Issues New Guidance on PPP Loan Forgiveness

The SBA has issued a new Frequently Asked Questions on PPP Loan Forgiveness to help borrowers plan and achieve this ultimate relief.

The updated answers shed light on some of the more significant issues the SBA will be looking at as they consider both loan forgiveness applications and new PPP loan applications, such as:

  • Calculating owner compensation by entity type (S-Corp, C-Corp, LLC, self-employed, general partner)
  • Calculating payroll costs for partial pay periods
  • Eligible cash compensation, retirement benefits and other payroll costs
  • Non-payroll costs that are ineligible for loan forgiveness
  • Importance of the “good faith” certification
  • Confirmation of the 500-employee threshold referring to total number of employees and the forgiveness test referring to full-time equivalents

Learn More During Our Next Webinar
Road to Relief: Where are We Now?

Join us on Thursday, August 13, for the next session in our Road to Relief webinar series as we discuss this guidance in more detail and provide updates on additional funding for EIDL and PPP loans, new stimulus funds for the healthcare industry and our latest recommendations on planning, documenting and maximizing forgiveness.

Date: Thursday, August 13
Time: 11:00a.m. – 12:00p.m. EDT

Listen to the Recording


Jeff Agranoff Jeff Agranoff is the Chief Human Resources Officer and a Human Resources Consulting Principal at Grassi. With over 18 years of experience working in public accounting firms, Jeff specializes in heading human resource departments, providing outsourced human resource solutions to clients and growing middle market businesses in various industries. Prior to joining Grassi, Jeff was the Chief Operating Officer and a Human Resources Principal... Read full bio

Lou Pizzileo An accounting and advisory Partner at Grassi, Lou Pizzileo plays a key role serving the firm’s clients in the manufacturing and distribution, technology and specialty finance practices. Entrepreneurial minded, Lou recently led the firm’s efforts in assisting companies with capturing available stimulus provided by the CARES Act, including the Paycheck Protection Program. He also recently created and leads the firm’s IT accounting practice. Lou... Read full bio