The SBA and Treasury Department released a simpler loan forgiveness application for Paycheck Protection Program loans of $50,000 or less to provide needed relief to lenders and borrowers.
The agencies released a two-page Form 3508S application, a three-page instruction sheet, and an interim final rule on the streamlined forgiveness process, which they said will allow lenders to process forgiveness applications more swiftly.
Under the simplified process, borrowers with loans of less than $50,000 are exempt from reductions in the forgiveness amount based on reductions in full-time equivalent employees, salary, or wages.
While these borrowers need not make those calculations or show they qualify for a safe harbor, they still must submit documentation to lenders supporting the amounts they paid for payroll costs or other forgivable expenses.
ICBA has led the effort to simplify PPP loan forgiveness and continues calling on community bankers and small-business owners to urge Congress to immediately pass legislation to simplify forgiveness for loans of $150,000 or less.
ICBA's Be Heard grassroots action center offers call alerts for small-business owners and community bankers that make it easy to call lawmakers and urge passage of the Paycheck Protection Small Business Forgiveness Act (H.R. 7777/S. 4117).
