WASHINGTON—The Small Business Administration (SBA) and Treasury Department have released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans under $50,000.
The SBA also published a notice to platform authorizing officials that the agency has begun remitting loan forgiveness payments to lenders.
In addition, the agencies released updated FAQs providing additional guidance on loan deferrals.
The interim final rule aims to simplify further:
- The forgiveness and loan review processes for PPP loans of $50,000 or less
- Lender responsibilities with respect to the review of borrower documentation of eligible costs for forgiveness in excess of a borrower's PPP loan amount for PPP loans of all sizes
The simpler loan application – SBA Form 3508S – may be used by any borrower with a total loan amount of less than $50,000, except for those borrowers who together with their affiliates received loans totaling $2 million or greater. A borrower who uses this form is exempt from any reductions in the borrower’s loan forgiveness amount based on reductions in full-time employees or reductions in employee salary/wages, NAFCU noted.
Instructions on completing the form are available here.
Lenders will still have to confirm receipt of the borrower certification in Form 3508S and confirm receipt of the documentation the borrower must submit to aid in verifying payroll and nonpayroll costs, NAFCU said.