Oct. 12th, 2020

Paycheck Protection Program Forgiveness Update

The SBA, in consultation with the Treasury Department, released a simplified loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to businesses with smaller loan amounts.

Specifically, under the IFR, PPP borrowers of $50,000 or less are exempted from any reductions in forgiveness based on:

  • Reductions in full-time-equivalent (FTE) employees; and
  • Reductions in employee salary or wages.

The new reduced form 3508S and the corresponding IFR are attached for reference.

PPP Loan Forgiveness Application Form 3508S: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf

PPP – IFR – Additional Revisions to Loan Forgiveness and Loan Review Procedures Interim Final Rules: https://home.treasury.gov/system/files/136/PPP–IFR–Additional-Revisions-Loan-Forgiveness-Loan-Review-Procedures-Interim-Final-Rules.pdf

Contact Us:

If you have any questions, don’t hesitate to reach out to our team at Hungerford Nichols CPAs + Advisors.

email: info@hungerfordnichols.com
(616) 949-3200
Website: www.HungerfordNichols.com

Source: https://www.journalofaccountancy.com/news/2020/oct/ppp-forgiveness-simplified-for-loans-50000-less.html