New Forgiveness Guidance For Loans $50,000 and Under.
The SBA and Treasury released a simplified loan forgiveness application for PPP loans of $50,000 or less. As your loan may be impacted by this new guidance, we are sharing some important updates below.
- SBA and Treasury have provided a simplified forgiveness application called Form 3508S. Click HERE to review the Form and HERE to review the Form Instructions.
- It is important to note the new guidance does not provide automatic loan forgiveness. Your procedures are the same: calculation of loan forgiveness and provision of all supporting documents are still required. Our Forgiveness Experts will work with you to ensure all required documentation has been provided before submitting your application to the SBA.
- Borrowers who qualify to use Form 3508S are exempt from any reductions in the loan forgiveness amount based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages that would otherwise apply.
- SBA Form 3508S may not be used if total PPP loans for the Borrower and its Affiliates are equal to or greater than $2,000,000.
So what’s next?
We are updating our Smart Portal to help you determine your eligibility and automatically populate Form 3508S. We anticipate the updates to the portal to be ready for 3508S processing within the next few weeks.
- If you have not started or have started but not submitted your Forgiveness application, please be patient while we complete the updates to our Smart Portal.
- If you have already submitted your Forgiveness application, we are working out the most efficient ways to help you with your Form 3508S journey. Please be patient while we determine if any further action is needed.
We believe the new guidance is a positive step for businesses that qualify. Remember, we are here to help!