On October 9th, the SBA and US Treasury announced a new, simpler loan forgiveness application and process for PPP recipients of loans for $50,000 or less.
“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,” said SBA Secretary Steven T. Mnuchin.
For eligible borrowers, the new application allows for fewer calculations and less documentation. These borrowers are exempt from reductions in loan forgiveness amounts based on FTE and salary and wage reductions. And, while the SBA may still request certain documentation in their loan review process, the new application doesn’t require borrowers to show the calculations used to determine their loan forgiveness amount.
For further detail and instructions, please reference the SBA’s October 9th press release and the resources below.
Contact us today for more information. Our PPP Services Group can help you submit a complete and accurate PPP loan forgiveness application for a loan of any size. Visit our COVID-19 Financial Resource and Tax Center for additional information on related matters.
by David Jean, CPA, CCIFP, CExP