On Thursday, October 8, 2020, SBA announced that small businesses with Paycheck Protection loans of $50,000 or less can now use a streamlined application to apply for their loan forgiveness.
This news comes as a bit of a relief to many who have been holding out hope for the “automatic forgiveness” of loans of a certain amount. While this is not automatic and the amount is decreased from the potential $150,000 limit discussed, the form is definitely more streamlined and does not require monetary reporting of how the dollars were used. It is a one page application of representations and certifications confirming that money was used on allowable costs.
It is also important to note that while the form does not require calculations, it does still require documents to be submitted with application, as need with the EZ and long versions of the application.
Find the new form here: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf
Find the instructions and additional details on the documents required with the application here: https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S%20Instructions.pdf
Please note that we are available to assist you as needed with all of your PPP forgiveness questions. For additional questions, please reach out to your dedicated Stephano Slack accountant or Outsourced Accounting Manager Samantha Musser, CPA at firstname.lastname@example.org.