SBA Releases New Simplified Application for Loans of $50,000 or Less
On October 8, the U.S. Small Business Administration (SBA) and the Treasury announced the release of a simplified forgiveness process for Paycheck Protection Program (PPP) participants that received loans of $50,000 or less.
The agencies published a new interim final rule offering guidance for recipients of PPP loans equal to or less than $50,000 (“eligible borrowers”). Details of the rule include:
- Eligible borrowers are exempt from reductions in forgiveness based on reductions in full-time equivalent (FTE) employees and reductions in employee salaries or wages.
- SBA Form 3508S is now available for eligible borrowers. Click here to view the instructions for the form.
- PPP borrowers should note that if a borrower and his or her affiliates received PPP loans totaling $2 million or more, the borrower who received less than $50,000 loses their eligibility for this simplified forgiveness application process.
As always, please contact us with any questions.