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SBA streamlines forgiveness process for PPP loans under $50K

Kim Ellingson
10.09.20
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Last night, the Small Business Administration (SBA) released some very good news for many small businesses who took advantage of the Paycheck Protection Program (PPP) earlier this year. In a newly-published interim final rule, the SBA streamlines the loan forgiveness process for PPP loans of $50,000 or less.

With the new rule, the SBA also issued a simple two-page forgiveness application form (Form 3508S), along with a three-page instruction document. Some highlights of these new materials: 

  • Certifications are required from the borrower, but not calculations.
  • Supporting documentation should still be included with an application, such as forgivable payroll and non-payroll expenses.
  • Requires borrowers to keep all supporting documentation for six years.

It’s important to note that a completed forgiveness application is still needed, but this process should significantly simplify the process for over two-thirds of PPP loans nationally. The team at Bremer is working to implement this new form and instructions as soon as possible. Be sure to check bremer.com/ppp for updated forms and process instructions as they are available.

Kim Ellingson

About Kim Ellingson

Kim is a Region President with Bremer, with an over 20-year history of providing business banking solutions.   Kim holds a degree in Business Administration, Management and Operations from Concordia College. She is an active volunteer in the Brainerd Lakes area and northern Minnesota, serving on Board of Trustees for Initiative Foundation and on the Board of Directors for St. Joseph's Foundation. She is also past-Chair of the Brainerd Lakes Chamber of Commerce, and an active volunteer with her church. )

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