Good news for PPP loan recipients of $50,000 or less
On October 9, 2020, the Small Business Administration (SBA) released a new interim final rule (IFR) providing additional guidance on the forgiveness process for PPP loans of $50,000 or less.
Under the new IFR, recipients of PPP loans of $50,000 or less are not required to reduce the amount eligible for forgiveness even if they had one of the following:
- Reductions in full-time-equivalent (FTE) employees
- Reductions in employee salary or wages.
Eligible recipients can use the new simplified Form 3508S to apply for the forgiveness.
The form does not require applicants to show the calculations of the amount eligible for forgiveness, but does ask to confirm some certifications. Certain documentation for payroll and non-payroll costs are required to be submitted with the application.
A copy of Form 3508S can be found here and instructions can be found here.
If you are qualified to use this form, make sure to submit it to your lender by October 31, 2020.
Please contact us if you have any questions regarding your PPP application for forgiveness.