SBA and Treasury Dept. Unveil Simpler PPP Loan Forgiveness Process
Are you thinking about applying for PPP loan forgiveness? If yes, then there is good news for you.
The U.S. Small Business Administration (SBA), after having a discussion with the United States Department of Treasury (USDT), announced a simpler loan forgiveness application for PPP loans of $50,000 or less.
Simple PPP Loan Forgiveness Application
Small businesses applying for loan forgiveness need to furnish the following information to the new PPP Loan Forgiveness Application Form 3508S:
- Business Legal Name (“Borrower”)/DBA or Tradename (if applicable)/Business TIN (EIN, SSN)
- Business Address/Business Phone/Primary Contact/E-mail Address
- SBA PPP Loan Number
- Lender PPP Loan Number
- PPP Loan Amount
- Employees at Time of Loan Application
- Employees at Time of Forgiveness Application
- PPP Loan Disbursement Date
- EIDL Advance Amount
- EIDL Application Number
- Forgiveness Amount
You can view the simpler PPP loan forgiveness application here.
Under this new development, small businesses who have borrowed $50,000 or less will face no deduction in loan forgiveness amount if:
- There is a reduction in the number of FTE employees
- They have reduced salary or wages by more than 25%
What’s more, borrowers with a total of $50,000 or less will not have to make any loan forgiveness calculation on the form. Also, borrowers don’t have to report employees’ hours and salary information.
However, borrowers have to present calculations in the event of an audit. So, they must keep records of everything.
You can click here to view the instructions for completing your PPP loan forgiveness application.
The Simpler Process, The Quicker Remittance
The coronavirus pandemic hurt 80% of small businesses. And PPP loans have helped many small businesses stay afloat in troubling waters. So streamlining the loan forgiveness process for PPP loans will certainly help borrowers.
Steven T. Mnuchin, United States secretary of the treasury, said in a prepared statement, “The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs,”
“Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” he continued.
Jovita Carranza, Administrator of SBA, said, “Nothing will stop the Trump Administration from supporting great American businesses and our great American workers. The Paycheck Protection Program has been an overwhelming success and served as a historic lifeline to America’s hurting small businesses and tens of millions of workers. The new form introduced today demonstrates our relentless commitment to using every tool in our toolbelt to help small businesses and the banks that have participated in this program,”
“We are continuing to ensure that small businesses are supported as they recover,” she added.
You can view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less here.