Last Friday, the Small Business Administration (SBA) released the Paycheck Protection Program loan forgiveness application form along with instructions for completing it and applying for loan forgiveness. The application consists of four parts: the PPP Loan Forgiveness Calculator, the PPP Schedule A, the PPP Schedule A Worksheet and the Borrower Demographic Information Form. The documents provide step-by-step directions for borrowers to calculate their eligible forgiveness amounts and further confirm that a PPP loan may be forgiven in full provided the following conditions have been met: at least 75% of the loan proceeds were used on eligible payroll costs; no more than 25% on eligible non-payroll costs; and staffing and salary levels were maintained. In addition, they provide new guidance and points of clarification on a number of other questions. For example, borrowers may not elect to utilize the Covered Period or an Alternative Payroll Covered Period that aligns with the borrower’s regular payroll cycles to determine the eight-week period within which the loan proceeds must be spent. In addition, they confirm that there is no penalty for a reduction in staffing if the borrower made a good-faith, written offer to rehire an employee during the eight week period, but the offer was rejected by the employee. Further, the 11-page release clarifies that payroll costs incurred, but not yet paid during the eight-week period (capped at $15,385 per employee reflecting the PPP $100,000 salary limit) will be eligible for forgiveness if paid on or before the next regular payroll date. The release also provides that compensation paid to owners, such as general partners or owner-employees should be separately categorized and calculated but are also included in payroll costs for forgiveness purposes.