The U.S. Small Business Administration (SBA), in consultation with the U.S Department of the Treasury (DoT), has released the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions for the application, the administration announced on Monday. 

SBA’s recent release form and instructions have described how borrowers may apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  

The administration also announced that it will soon issue regulations and guidance to further assist borrowers as they complete their applications and provide lenders with guidance on their responsibilities. The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers.

Of the new regulations, the SBA has provided options for borrowers to calculate payroll costs using an "alternative payroll covered period" that aligns with borrowers' regular payroll cycles as well as flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan.

The SBA has included step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness and borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by the end of June 2020. 

In addition, the administration has added new exemptions from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined. 

The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released today will help small businesses seek forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans.

About Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations.

Deloitte has conducted a chief financial officer (CFO) survey, “Deloitte CFO Signals, Survey,” to analyze how executive teams have focused on adapting operations for near-term performance, as well as how leaders evolve business amid the COVID-19 pandemic, the company reported on Tuesday. 

"While CFOs are naturally occupied with addressing the near-term realities of these challenging times, it is encouraging to see widespread recognition that an acceleration in digital transformation will lead to significant opportunities and real benefits for society over the long-term," Joe Ucuzoglu, CEO of Deloitte US. 

Deloitte’s CFO Signals has tracked the thinking and actions of CFOs within national enterprises. The report has provided key insights into the business environment, company priorities and expectations, finance priorities and CFOs' personal priorities. The Deloitte CFO Signals survey for the third quarter of 2019 was conducted during the period opening May 4, 2020 and ending May 8, 2020. A total of 156 CFOs responded.

The survey noted that perceptions of North America fell drastically, with 1 percent of CFOs rating current conditions as “good.” 58 percent expect better conditions in a year, up from 35 percent. Perceptions of China's current conditions fell slightly to 9 percent, and expectations for a year from now rose sharply to 51 percent.

CFOs' initial optimism has diminished with 60 percent of respondents noting that the milestone will not be reached until 2021 or later. The majority of CFOs optimistic regarding their companies' ability to resume on-site work on at least a limited basis, while under half say they will resume on-site work as soon as governments allow it.

The financial executives have noted that they expect major increases in remote work, automation and cloud computing. 75 percent of CFOs expect more of their workforce to work remotely and nearly half expect a smaller real estate footprint.

75 percent noted that their respective organizations are able to sufficiently manage the risks of on-site work, and most do not expect to provide hazard pay. Additionally, over 70 percent say those who can continue to work remotely will have the option. 

Deliotte’s survey noted that year-over-year growth expectations notably decreased, with each metric hitting a new low and turning negative for the first time. Revenue growth slid from 3.7 percent to -8.6 percent and earnings growth fell from 6 percent to -18.7 percent.

55 percent still say U.S. equity markets are overvalued despite very sharp market declines and 30 percent of respondents expect changing FX rates or currency values to impact their business over the next year.

"The pandemic's fallout has been both severe and widespread, resulting in a dramatic drop in CFOs' perceptions of global economic activity… CFOs are cautiously optimistic about reopening, as they work to navigate the future with a remote workforce, and an eye on returning to near normal operational levels in early- to mid-2021," said Sanford Cockrell III, national managing partner of the US Chief Financial Officer Program, Deloitte LLP.

About Deloitte

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