Treasury simplifies PPP loan forgiveness

Written on Oct 09, 2020

Recipients of Paycheck Protection Program loans of $50,000 or less will be able to apply for forgiveness using a simplified application released Thursday by Treasury and the U.S. Small Business Administration. Also released were instructions for Form 3508S

A new interim final rule provides new guidance on forgiveness and loan review processes for PPP loans of $50,000 or less.

Under the rule, PPP borrowers of $50,000 or less are exempted from any reductions in forgiveness based on reductions in full-time-equivalent employees and employee salary or wages.

Read more in the Journal of Accountancy.

Related: SBA settles confusion over PPP forgiveness application due date

The U.S. Small Business Administration on Oct. 13 released guidance confirming that Paycheck Protection Program loan forgiveness applications are not due Oct. 31. Read more.