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SBA Issues New Loan Forgiveness Rules & Application for Small Borrowers
October 12, 2020
SBA ISSUES NEW LOAN FORGIVENESS RULES AND APPLICATION FOR SMALL BORROWERS
In an effort to simplify the loan forgiveness process for small business owners, the Small Business Administration (“SBA”) has adopted de minimis exceptions to the loan forgiveness reduction rules for Paycheck Protection Act loans of $50,000 or less.
The SBA has adopted a new loan forgiveness application, PPP Loan Forgiveness Application 3508S, instructions and interim final rules related to PPP borrowers with loans of $50,000 or less. The SBA has now determined that the loans for such borrowers will be fully forgiven and exempt from loan forgiveness reductions based on reductions in full-time equivalent employees or employee salary.
To read the full MSF Client Alert please click here.