19 Oct PPP loans of $50,000 or less will be able to use a much more simplified process of PPP loan forgiveness
The SBA and the US Treasury announced recently on 10/8/2020 that PPP loans of $50,000 or less will be able to use a much more simplified process of PPP loan forgiveness. Those businesses will be able to self-certify that they used the money to receive PPP loan forgiveness. The form will be a simple checklist and attestation with minimal other information needed. This new form is SBA Form 3508S. Borrowers can use this form with their PPP lending bank, or wait until their banks update their portals to accept this information directly. As of today, 96,000 PPP loan forgiveness applications have been submitted to the SBA by banks, and none of them have yet to be reviewed by the SBA for forgiveness (per Forbes Magazine). There were 5.2 million SBA PPP loans issued to small businesses and 3.57 million of those loans issued were $50,000 or less. Therefore, this new simplified process for small businesses with $50,000 or less in PPP loans, will simplify the PPP loan forgiveness efforts for most of the small businesses that received the PPP loans. Banks will soon be forthcoming with further PPP loan forgiveness guidelines and processes for those small businesses that they processed PPP loans for. Keep in close contact with your small business PPP lending bank on their developments with this.