PPP loans under $50,000 get simplified forgiveness process with new rule
The U.S. Small Business Administration and the Treasury Department are making it easier for companies to get their Paycheck Protection Program loans of $50,000 or less forgiven with a simpler loan forgiveness application and interim final rule.
The new application form allows small business owners who received less than $50,000 in PPP funds to simply complete and sign Form 3508S to have their loan forgiven. ShindelRock tax professionals are recommending qualified loan recipients still wait to apply for forgiveness, however, until further guidance is issued and the status of current proposed legislation becomes more clear. All PPP borrowers still have up to 24 weeks to spend funds on qualified expenses in order to earn forgiveness, and another 10 months from the date of the end of the covered period to apply for forgiveness.