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.