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SBA makes forgiveness much easier for PPP loans up to $50K

On Behalf of | Oct 12, 2020 | Business Law

SBA rolled out a third forgiveness form, one that will all but assure full forgiveness for small businesses that borrowed up to $50,000 under the Payroll Protection Program.

Form 3508S will not penalize a borrower for reductions in payroll or reductions in employee headcount. Rather, the only question is whether the borrower spent the money on permissible expenses over the 24-week covered period. Borrowers still must submit documentation to prove the payment of forgiveness-eligible expenses. Detailed instructions are found here.

Overall, this application will be used for 3.57 borrower applications, and it will certainly assist lenders in processing these applications.

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