On October 8, 2020, the SBA released a simpler loan forgiveness application (Form 3508S) for PPP Loans of $50,000 or less. The main provision of this new PPP Loan Forgiveness application is that applicants with PPP Loans of $50,000 or less now have an exemption from both the FTE reduction penalty and employee salary and wages reduction penalty. This new application will provide for full forgiveness as long as you satisfied the other requirements (i.e. loan proceeds were utilized for eligible costs under the 8 week or 24 week covered period, includes payroll costs equal to at least 60%, does not exceed owner’s cap, etc.). You are still required to submit payroll and non-payroll documentation to verify costs along with application.
You may access the forms here:
- Click here to access the simpler loan forgiveness application.
- Click here to view the instructions for completing the simpler loan forgiveness application.