The Small Business Administration (SBA) and U.S. Treasury Department unveiled a new streamlined application for Paycheck Protection Program (PPP) forgiveness for businesses with PPP loans of $50,000 or less.
Earlier this summer, the SBA and Treasury proposed the idea of straight forward loan forgiveness procedures for a vast number of smaller loans. The result, Form 3508S, will simplify the loan forgiveness process by requiring less documentation and fewer calculations from eligible borrowers. The most noteworthy provision from the new guidance is how the form removes hurdles for loan forgiveness related to reductions in full-time-equivalent employees and reduction in salary or wages. While the new application doesn’t eliminate the need to provide the lender with specific documentation, it does significantly reduce the information provided to the SBA. The SBA has stated is does reserves the right to request documentation and back up calculations in determining loan forgiveness.
To view the application, visit the PPP Loan Forgiveness Form 3508S Instructions on the SBA website.
We are committed to providing you with the information and resources needed to make informed decisions for the future of your organization. As always, we strongly encourage you to talk to your accountant or financial advisor to decide what’s right for you. We will continue to update this article with new information as it becomes available.