New Simplified Forgiveness for Paycheck Protection Program Loans Under $50,000
Small businesses with Paycheck Protection Program (PPP) loans of $50,000 or less can apply for forgiveness using a new, simplified application. The US Small Business Administration and Treasury Department released a new interim final rule that provides guidance for loans under $50,000.
Under the new rule, 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.
The simplified forgiveness application, Form 3508S, can be used by borrowers with a total loan amount of $50,000 or less, unless they and their affiliates received loans totaling $2 million or more. Borrowers will have to make some certifications and provide documentation to the lender for payroll and nonpayroll costs, but will not be required to perform potentially complicated FTE or salary reduction calculations.
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