Borrower Accounting for a Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program
Q&A Section 3200.18 – Long-term debt
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Q&A Section 3200.18 – Long-term debt
1 year ago · 85.8 KB Download
Inquiry—How should a nongovernmental entity[1] account for a forgivable loan received under the Small Business Administration Paycheck Protection Program (PPP)[2]?
Reply—Given the unique nature of the PPP, questions have arisen relating to how a borrower under the program should account for the arrangement. While the legal form of the PPP loan is debt, some believe that the loan is in substance a government grant.
More information is available in the full Q&A.
[1] References to nongovernmental entities include business entities and not-for-profit entities (NFPs).
[2] Please refer to the SBA website for information regarding the Paycheck Protection Program.
Download the Q&A Section 3200.18 – Long-term debt
File name: tqa-section-3200-18.pdf
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