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.