SBA, U.S. Treasury Offer More COVID-19 Business Assistance
The following article contains excerpts from a press release issued on May 15, 2020 by the Small Business Administration.
May 18, 2020 | The Toy Association is alerting member companies to newly available government assistance related to the COVID-19 pandemic.
On May 15, the Small Business Administration (SBA), in consultation with the U.S. Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application along with detailed instructions for borrowers on how to apply. Consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the form includes several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
- Step-by-step calculation instructions to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- A new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
The SBA plans to issue additional regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
Toy Association members can access additional loan assistance information in its COVID-19 business toolkit by navigating to the Government Funding tab. This section will continue to be updated with new information as it becomes available.
This is just one component of The Toy Association’s complete guide for businesses navigating the pandemic. Learn more on the COVID-19 Resources page.