New Simplified Loan Forgiveness Application for Smallest PPP Borrowers
Last week, the SBA and Treasury took steps to simplify the loan forgiveness process for PPP borrowers of $50,000 or less. According to new guidance issued through an interim final rule, PPP borrowers with loan sizes under this threshold are now exempt from reductions in forgiveness due to either reductions in a) full-time equivalent (FTE) employees or b) employee salary or wages.
SBA and Treasury also provided these borrowers with a simplified application (SBA Form 3508S) to apply for loan forgiveness. While these borrowers will no longer have to complete potentially complex calculations regarding FTE counts or salary reductions, qualified borrowers will still be required to complete and submit a loan forgiveness application and await formal forgiveness from the SBA.
To date, PPP borrowers with loans in excess of $50,000 are still required to perform calculations related to FTE and salary reductions and submit supporting documentation as outlined in the primary forgiveness application, SBA Form 3508.
If you are interested in additional support for your loan forgiveness calculations, please connect with our PPP Advisory Team to discuss how our team can help. Additionally, stay up-to-date on insights and guidance related to PPP loan forgiveness by visiting MFA’s PPP Resource Center.
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