The U.S. Small Business Administration has released a simpler loan forgiveness application for Paycheck Protection Program loans of $50,000 or less. The new two page form will cover almost 70 percent of PPP loans by volume. The SBA said the move will "streamline the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars."
The OBL has been advocating for a simpler forgiveness process since the program started and will continue to urge legislators to include language in any new stimulus legislation that would further streamline the process and increase the ceiling to $150,000.
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on Oct. 2. The agency said it "will continue to process all PPP forgiveness applications in an expeditious manner."
This week, the agency also clarified that borrowers may submit a loan forgiveness application at any time before the loan matures. SBA issued the FAQ in response to questions about the expiration date of Oct. 31, 2020, which appeared on its forgiveness application forms (3508, 3508EZ and 3508S).
Click here to view the simpler loan forgiveness application.
Click here to view the instructions for completing the simpler loan forgiveness application.
Click here to view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.