SBA Releases Simplified PPP Forgiveness Application for Loans of $50,000 or Less
The U.S. Small Business Administration (SBA) and the Department of the Treasury recently released a simplified forgiveness application for recipients of Paycheck Protection Program (PPP) loans of $50,000 or less.
The new application form, SBA Form 3508S, can be used by PPP borrowers applying for forgiveness on loans totaling $50,000 or less, unless borrowers together with their affiliates received loans totaling $2 million or more.
The SBA also released a new interim final rule (IFR) providing new guidance concerning forgiveness and loan review processes for loans of $50,000 or less. Under the IFR, PPP borrowers of $50,000 or less are exempted from any reductions in forgiveness based on reductions in full-time-equivalent (FTE) employees and reductions in employee salary or wages. Borrowers of $50,000 or less are still required to make some certifications and provide documentation to the lender for payroll and nonpayroll costs.
For all PPP loans, the IFR also contains guidance on lender responsibilities related to the review of borrower documentation of eligible costs for forgiveness in excess of a borrower’s loan amount.
Read the full interim final rule at the SBA website.