Recipients of Paycheck Protection Program (PPP) loans of $50,000 or less are now able to access simplified loan forgiveness applications from the Small Business Administration (SBA).
PPP borrowers of $50,000 or less are exempt from any reductions in forgiveness under a new interim final rule (IFR) based on the following:
- Reductions in full-time-equivalent (FTE) employees; and
- Reductions in employee salary or wages.
According to the Journal of Accountancy, it is estimated that the revised form should benefit about 60 percent of 3.5 million PPP loans nationwide, accounting for close to $62 billion of the $525 billion borrowed in PPP loans.
The change in the application process is designed to streamline the PPP forgiveness process, providing financial and administrative relief to small businesses.
The SBA has said that the process of approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers began on October 2, 2020, and will continue until all applications are properly reviewed.
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