New PPP Loan Forgiveness Application for Loans $50,000 or Less
The U.S. Small Business Administration (SBA) has released additional guidance on the Paycheck Protection Program (PPP) loan forgiveness process.
The latest Interim Final Rule (IFR) further simplifies the forgiveness process for PPP loans $50,000 or less. The IFR also eases lender responsibilities concerning the review of borrower documentation for PPP loans.
The full text of the IFR can be found here.
The key takeaway from this IFR is the release of Form 3508S. The form can be used by borrowers with loan amounts of $50,000 or less, except for those borrowers that, together with their affiliates, received loans totaling more than $2 million. A borrower who qualifies and uses Form 3508S is exempt from any reductions in the borrower’s loan forgiveness amount based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages that would otherwise apply.
The form and instructions can be found on treasury.gov under "For Borrowers."
Brown Smith Wallace PPP Loan Resources
Our CARES Act Loan Consulting team can help organizations proactively work with their lenders by applying and understanding the requirements for loan forgiveness.