SBA Simplifies PPP Loan Forgiveness for Loans Under $50,000

Last week the SBA issued additional guidance for Companies that received PPP loans of $50,000 or less, whereby they would no longer be subject to the penalty provisions of the forgiveness calculation  for reductions in their FTE employee headcount as well as for salary and wage reductions for existing staff.

This provides a substantial benefit to employers  from which the loan forgiveness would been limited due to meeting the fact pattern above.

The SBA has published a new form, Alternative Loan Application Form 3508S, that simplifies the process. (attach)

This provision does not apply to borrowers that together with their affiliates received loans totaling $2 million or more.

In the meantime, if you need advice specific to your situation, please feel free to contact us.