Guidance for Forgiveness for PPP Loans
The SBA issued an interim rule regarding the forgiveness process for Paycheck Protection Program loans $50,000 or less and guidance regarding lenders' responsibilities reviewing borrowers' expenses over those necessary to qualify for full forgiveness for all loan sizes.
Loans of $50,000 or Less - Administrative Relief
To ease the administrative burden of reviewing loans of $50,000 or less with the exception of borrowers of affiliates that together received loans totaling $2 million or greater, the SBA released a new simplified form (Form 3508S). Form 3508S requires fewer calculations and less documentation, click here for instructions.
- Borrowers that use Form 3508S are exempt from any reductions in the borrower's loan forgiveness amount based on reduction in full-time equivalent (FTE) employees or reductions in salary and wages that would have applied.
- Borrowers are responsible for providing accurate calculations of the loan forgiveness amount.
- Borrowers will not receive forgiveness without submitting all documentation.
Lenders Responsibilities Reviewing Borrower's Expenses Above Those Necessary to Qualify for Full Forgiveness for All Loan Sizes
- Lenders must confirm receipt of the borrower certification and receipt of the documentation verifying payroll and nonpayroll costs (for Form 3508, 3508EZ, or the lender's equivalent form), confirm the borrower's calculation on the loan forgiveness application, up to the amount to reach the requested forgiveness amount.
- The amount of loan forgiveness cannot exceed the principal amount of the PPP loan.
Contact your Whittlesey advisor for assistance with your forgiveness application or for more information.
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