The SBA and Treasury Unveil Simpler PPP Forgiveness on Loans of $50,000 or Less
Recently the Small Business Administration (SBA) and the Treasury Department unveiled a simpler loan forgiveness application for businesses that obtained Paycheck Protection Program (PPP) loans of $50,000 or less. This interim final rule (IFR) provides new guidance on the forgiveness and loan review process for businesses that fit the above funding parameters. 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
- Reductions in employee salary or wages
This IFR streamlines the PPP Forgiveness process, offering financial and administrative relief to the small businesses of America. This simplified process assists businesses by not requiring the complicated FTE or salary reduction calculations.
The new application form, SBA Form 3508S, can be used by businesses with PPP loans of $50,000 or less, unless when their loan is combined with those of their affiliates and the total exceeds $2 million.
For more information, visit https://home.treasury.gov/news/press-releases/sm1148.
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