SBA Simplifies Forgiveness Application for Some PPP Loans
October 12, 2020
The SBA released a new simplified Paycheck Protection Program (“PPP”) forgiveness application for loans of $50,000 or less on October 8, 2020 under a new Interim Final Rule.
Under the new rules, eligible borrowers will not have their forgiveness amount reduced if they had a reduction in full-time equivalent employees (“FTEs”) or a reduction in employee salary or wages during their covered period.
According to the SBA, there are approximately 3.57 million PPP loans of $50,000 or less (accounting for approximately $62 billion of the $525 billion in PPP loans).
Note: the new application cannot be used by borrowers that together with their affiliates received PPP loans of $2 million or more. See the link here for a refresher on the SBA’s affiliate rules.
- New loan forgiveness application form here
- Instructions for completing this new forgiveness application here
- Interim Final Rule