PPP Forgiveness Requirements Eased for Loans of $50,000 or Less

    SBA PPP Loan Forgiveness Eased

    Great News!

    The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, has released a simpler loan forgiveness application for business owners who received Paycheck Protection Program (PPP) loans of $50,000 or less.

    The new application – Form 3508S (linked below) – is one-and-half pages long, and requires the borrower to certify that the amount they are seeking forgiveness for was spent in accordance with the PPP requirements. Documentation must be submitted to their lender confirming payroll costs, employee numbers, business mortgage interest payments, rent and utility costs for the covered period. The new forgiveness application is simpler for eligible borrowers to use, and will reduce the processing time on the part of the lenders.

     In addition, borrowers who use the Form 3508S are exempt from the PPP requirement that “Full Time Equivalent” employee numbers remain the same during their covered period as before the pandemic, along with the requirement that employee wages not be reduced.  Thus, borrowers with loans of $50,000 or less who use the new form are eligible to have their full loan amount forgiven even if economic circumstances kept them from meeting one or both of those requirements of the program.   The SBA is currently processing forgiveness applications provided by the SBA lenders. Borrowers have 10 months from the end of their covered period to submit the Loan Forgiveness Application and accompanying documents to their lender, and the lender then has 60 days to make a determination on the loan forgiveness request.

    InBestmetnts views this as a positive development but more needs to be done. We hope our leaders will put politics aside and get back to the negotiating table to hammer out a coronavirus stimulus package that will help struggling families, businesses, renters, and landlords.

    View the simpler loan forgiveness application.

    View the instructions for completing the simpler loan forgiveness application.

    View the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.

    Previous articleSeattle Housing in October 2020 = Low Supply📉 + Bidding Wars⚔️ + Record Prices🚀
    Vinod and Jo are the founders of InBestments.com, a pioneer residential real estate wealth platform that removes the guesswork from real estate, whether you are buying your first home to live in or your 20th investment property to hold as a rental or to flip. InBestments is an ecosystem of lenders, agents, RE investors, home buyers, and homeowners, all working together with a singular goal – to build wealth with smart real estate. InBestments elevates Loan Officers and Agents to the role of Real Estate wealth adviser for life and enables you to provide superior service that your clients can't find anywhere else. Don’t be just another single-transaction loan officer or agent for your client. Build lifetime clients and close multiple deals per client. Never be forgotten. Period. Jo Dixit, is also the owner and Designated Broker of BricksFolios Real Estate Solutions, an investment focused brokerage that provides an unique end-to-end service encompassing Portfolio Planning, Funding Strategy, Asset Selection, Asset Management and Asset Disposal/1031 Exchange. Vinod and Jo's goal is to enable 100,000 families to achieve financial freedom with goals driven, smart real estate investments.


    Please enter your comment!
    Please enter your name here