Below please find a link to a newly-updated version of the Sheppard, Mullin, Richter & Hampton LLP (Sheppard Mullin) Paycheck Protection Program (PPP) Loan Forgiveness Estimator Workbook (the Workbook), which was created by and is the property of Sheppard Mullin.
The Workbook updates and replaces the Loan Forgiveness Estimator Workbook that Sheppard Mullin released on May 28, 2020 in light of (i) the Paycheck Protection Program Flexibility Act of 2020 (the PPP Flexibility Act), which was signed into law on June 5, 2020 to amend the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), under which the PPP was established, and (ii) the regulatory guidance that has since been issued in connection with the CARES Act and the PPP Flexibility Act.
The Workbook is intended to help both PPP loan borrowers and those considering taking out a PPP loan better understand and navigate the complex criteria for PPP loan forgiveness and estimate the extent to which their loan usage may qualify for forgiveness thereunder. To that end, the Workbook:
- Contains a number of dynamic questions and notes that guide the user through the calculation process, as well as a comprehensive summary section with a corresponding pie chart that distills and explains the borrower’s estimated outcome given the user’s inputs;
- Includes ancillary worksheets by which the user can calculate the borrower’s employees’ wages and salaries and full time equivalencies for the relevant periods necessary to determine the impact that each may have on the borrower’s eligibility for PPP loan forgiveness; and
- Outputs examples of how the borrower could complete the PPP Loan Forgiveness Applications (SBA Forms 3508 and SBA Form 3508EZ) released by the Small Business Association given the borrower’s use of PPP loan proceeds.
The Workbook also includes a “Notes for Users” worksheet that users should review for a fulsome overview of the Workbook’s key methodologies, assumptions and limitations.
The Workbook is based on the interpretation of the CARES Act, the PPP Flexibility Act and the related regulatory guidance (collectively, the PPP Laws) by Sheppard Mullin attorneys as of the version date indicated therein and may not represent a complete or accurate application of the PPP Laws for all borrowers.
Users should first carefully review the “Terms and Conditions of Use” worksheet of the Workbook prior to using the Workbook.
*Things are changing quickly and the measures and interpretations described here may change. Our analysis is necessarily limited by the time sensitivities of the current crisis as well as the absence of precedent for some of what is contained here. This analysis represents our best interpretation and recommendations based on where things currently stand.*