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PPP Forgiveness Application

Alabama Small Business Development Center Network


PPP Forgiveness Application

On Friday 5/15/20, SBA released a Loan Forgiveness Application that is designed to educate borrowers on how to apply for PPP loan forgiveness. Additional guidance – for both borrowers and lenders – is still expected from the agency.


The Alabama SBDC will host a webinar on Monday May 18 at 3pm to review the application and guidelines.


The application includes a worksheet that details how to calculate the amount of the loan that can be forgiven and provides a summary of costs eligible for forgiveness. The SBA also provided a list of documents borrowers have to submit with their forgiveness applications.


The document clarified a few items that have frustrated both borrowers and lenders since the program’s inception:


The “Incurred vs Paid” Confusion

·    Eligible Payroll Costs: “Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date.“

·    Non-Payroll Costs: An eligible nonpayroll cost must be paid during the Covered Period OR incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.


Alternative Payroll Covered Period: Allows the borrower to align PPP forgiveness with the payroll period.

·    “For administrative convenience, Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the eight-week (56-day) period that begins on the first day of their first pay period following their PPP Loan Disbursement Date (the “Alternative Payroll Covered Period”).”

·    Note: The alternative covered period dates only applies to payroll. The “covered period” begins on the loan disbursement date.


Average FTE Calculation:

·    “For each employee, enter the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. The maximum for each employee is capped at 1.0. A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may be used at the election of the Borrower.”


Access the Loan Forgiveness Application Here.




·    US Treasury: CARES Act / PPP Resource Page for Small Business

·    SBA Disaster Loan

·    Alabama Department of Labor


Need to check on the status of your Disaster Loan application? Scroll down for instructions.


Featured Webinar of the Week 5/18 at 3PM


SBA has released a Forgiveness Application that clarifies many quesitons.

Join us for a discussion of what was fixed, and what we're still waiting on.




On Wednesday May 20th at 11AM, we will cover a 10-step process on how to prepare a compliant SBIR/STTR Phase I proposal. We will cover registration in the submittal portal, important items to consider before making a bid decision, building your compliance matrix, preparing your outline templates before your start writing, conducting effective reviews, and important production and submittal matters to consider. Hosted by Alabama PTAC and the Alabama International Trade Center; featuring Sandy Allbee, of BidDesigns.



Preparedness Plan & Reopening Tips


This template is designed to help businesses develop and implement a plan for reopening their business, ensuring a safe and healthy workplace for all workers. The template fits the potential needs of different types of businesses.


Download your Preparedness Plan Template here. (DOCX)


Many small businesses have already reopened, while others are still in the process of preparing to safely allow customers to return. This helpful guide provides a few suggestions on what you can do for a successful re-opening.


Helpful Tips:

Preparing to Reopen (PDF)



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