SBA Simplifies PPP Forgiveness Rules

On October 8, 2020, the SBA offered a new rule regarding PPP loan forgiveness for smaller loans.

The SBA also released a new form for some borrowers to use for this loan forgiveness.

Under the new rule, businesses that took loans of less than $50,000 will have those loans automatically forgiven.  Form 3508S, a loan forgiveness form, offers an easy, one-page form for this loan forgiveness.

The new rule primarily affects businesses with few employees or where the owner is the only employee.

The rule would allow PPP borrowers who borrowed less than $50,000 to be exempt from loan forgiveness reductions in the case of cuts in the number of full-time employees or a drop of more than 25% of worker salaries.

The move could affect nearly 3.5 million PPP borrowers.  There is also a push to increase this cut-off amount to $150,000, allowing for even more borrowers to have their loans forgiven in the future.

Crow Legal is here to help you navigate regulation changes regarding PPP loan forgiveness.

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