The updates keep coming! The Small Business Administration (SBA) in consultation with the Treasury Department released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. A new interim rule (IFR) also provides guidance relating to forgiveness and loan review processes for loans under $50,000.
According to the IFR, PPP loan borrowers of $50,000 or less will now be exempted from any reductions in forgiveness based on:
- Reductions in full-time equivalent (FTE) employees, and
- Reductions in wages or salaries of employees.
The new simpler loan forgiveness application and additional guidance streamlines the PPP forgiveness process to provide financial and administrative relief for PPP loan borrowers of $50,000 or less. SBA began approving PPP loan forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020.
Here is the link to the latest IFR.
Here is the link to the simplified form.
For more information about all COVID-19 tax and business matters, visit https://www.isdanerllc.com/covid-19-tax-business-implications/