On October 8, the SBA released Form 3580S, a simpler loan forgiveness application for PPP loans of $50,000 or less.
According to Secretary Steven T. Mnuchin, “The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs. Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly.”
It is important to note that the new application allows borrowers with PPP loans of $50,000 or less to ignore the Full-Time Equivalent (FTE) and wage reduction calculations required of other loan forgiveness applicants. These borrowers are still required to spend their PPP funds on qualified expenses including, payroll costs, rent, utilities, mortgage interest, but will likely have their entire loans forgiven, even with a workforce or wage reduction. The borrowers will still be required to make some certifications and provide documentation to the lender for payroll and non-payroll costs.
If you have questions about whether you should move forward with your application, or if you would like assistance navigating the forgiveness process, please reach out to our Coronavirus Crisis Team who is happy to help.