On October 9, 2020, the U.S. Small Business Administration (SBA) released the new application form (SBA Form 3508S) along with instructions. Recipients of PPP loans of $50,000 or less will be able to use the simplified application form. Also, as the Department of the Treasury released a new interim final rule, PPP borrowers of $50,000 or less are exempted from any reductions in forgiveness based on: (1) Reductions in full-time-equivalent (FTE) employees; and (2) Reductions in employee salary or wages. Although the borrowers will still need to make some certifications and provide documentations to the lender, the application process will be streamlined for PPP borrowers of $50,000 or less.
For details please see:
- Form 3508S: https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S.pdf
- Instructions for Form 3508S: https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S%20Instructions.pdf
- Interim Final Rue: https://www.sba.gov/sites/default/files/2020-10/PPP%20-%20IFR%20--%20Additional%20Revisions%20to%20Loan%20Forgiveness%20and%20Loan%20Review%20Procedures%20Interim%20Final%20Rules.pdf