Applying for forgiveness and preparing to re-open

The much anticipated Paycheck Protection Program (PPP) Loan Forgiveness Application was released by the U.S. Small Business Administration with input from the U.S. Department of Treasury.

Purpose of PPP Loan

The PPP was part of the CARES Act and created to support eligible small businesses with forgivable loans to keep Americans working during the COVID-19 pandemic. 

PPP Loan Forgiveness 

Businesses can seek forgiveness at the end of an eight-week covered period that began with the disbursement of their PPP loan. To apply for forgiveness, the PPP loan borrower must complete the application and submit it to the lender that is servicing their loan. 

The application includes the following 11 pages:

• Page 1-2: Loan Forgiveness Calculation Form Instructions & Summary of Costs Eligible for Forgiveness
• Page 3-4: PPP Loan Forgiveness Calculation Form & Signatory Page
• Page 5-6: Instructions for PPP Schedule A & PPP Schedule A Worksheet
• Page 7-9: Instructions for PPP Schedule A Worksheet & PPP Schedule A Worksheet
• Page 10: List of Documents that Each Borrower Must Submit
• Page 11: Borrower Demographic Information Form (Optional)

The SBA will soon be releasing additional regulations and guidance to assist borrowers in completing their applications and to clarify the responsibilities of lenders.

PPP Loan Audits

The federal government has determined that PPP loan funding for less than $2 million “will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” The SBA Loans under $2 million will not be subject to increased scrutiny in the form of loan audits as a matter of course, absent cause to do so.

Follow this link for access to the PPP Loan Forgiveness and Instructions:

Preparing to Re-Open

Businesses in York and Adams Counties are entering the yellow phase of reopening on May 22, 2020 at 12:01 AM. In preparation of reopening, business leaders will need to review the Governor’s guidance for businesses permitted to operate during the COVID-19 emergency (link below). All industries and sectors are required to follow these guidelines.

Federal and State Guidance

For full explanations on safety measures and CDC and DOH guidance, follow the links below:

Order Directing Building Safety Measures (Issued April 5, 2020)
Order Directing Public Health Safety Measures (Issued April 15, 2020)
CDC Guidance for Businesses and Workplaces
DOH Guidance for Social Distancing and Cleaning

For current information from the Commonwealth of PA directed to businesses, visit:

Responding to COVID-19 in Pennsylvania for Businesses

CGA Guidance

For additional guidance or clarification, please contact a CGA attorney.

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