PPP Forgiveness Made Easier!

October 9, 2020
Finance

Fresh updates from the SBA on PPP Loan Forgiveness – Released 10/8/2020

The SBA released a streamlined application — Form 3508S — designed specifically for those who borrowed less than $50,000.

There was some talk before of loans under a certain amount being automatically forgiven, although this is not the case. This form does not make forgiveness automatic, so what exactly makes it so much easier than the standard app? Well,

1. For borrowers of a PPP loan less then $50,000 the total amount eligible for forgiveness is not subject to reduction if you reduced salaries or headcount (FTE)

2. Small borrowers (loans under 50k) are no longer required to show their math.

Although, borrower are still required to do the math and calculate the amount eligible for forgiveness.

Keep in mind too that even though you don’t have to show the math in your app the SBA has the right to request additional documents supporting your claims at any time.

Do you meet the requirements for this new 3508S Form? You can check it out here , but we suggest waiting to apply.

Why you should still wait to apply for forgiveness

We know you want to get it over with, but you may want to hold off.

It is clear the SBA is still coming out with relatively drastic changes, so holding off on submitting can still be a good idea for most people.

That doesn’t mean you can’t start to prepare your application! Fill out the form to the right and download our PPP Loan Forgiveness Checklist to get started.