For some borrowers, Paycheck Protection Program (PPP) loan forgiveness just got easier. Last week, the U.S. Small Business Administration (SBA) released a new, simplified forgiveness application form.
Borrowers are eligible to use the Form 3508S if their total PPP loan amount was $50,000 or less. However, borrowers who received PPP loans totaling $2 million or more together with their affiliates are barred from using the form.
The form simplifies the process by requiring fewer calculations and less documentation from eligible borrowers. Those who use the form are exempt from reductions in loan forgiveness amounts based on decreases in full-time equivalent employees or in salaries or wages.
Furthermore, the form does not require borrowers to show the calculations used to determine their loan forgiveness amount, though these may be requested as part of the loan review process.
The Form 3508S and 3508S instructions are available on the Treasury Department’s website. The SBA also released guidance on use of the new form.
As always, please continue to follow the Paycom blog for updates on coronavirus relief legislation and other relevant topics.
