Simplified PPP Forgiveness for $50,000 or Less
On October 8, 2020, the Treasury Department and the Small Business Administration announced a simplified forgiveness application form for Paycheck Protection Program (“PPP”) loans of $50,000 or less.
Under the new rules, borrowers with such loans are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent employees or in salaries or wages.
However, in order to qualify for forgiveness, borrowers must still have spent the PPP funds on qualified expenses (at least 60% of which must be for qualified payroll costs), and must still provide documentation of such expenses, including bank statements, check images, tax forms, etc. as part of the forgiveness application.
The new application form for such borrowers is: PPP Loan Forgiveness Application Form 3508S, which is available at: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf