Washington — The U.S. Small Business Administration and Department of Treasury released new guidance on Oct. 8 that streamlines the forgiveness process for Paycheck Protection Program loans under $50,000.
Under SBA Form 3508S, borrowers who took out loans less than $50,000 are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent employees or in salaries or wages. The form also does not require borrowers to show the calculations used to determine their loan forgiveness amount.
SBA said it began approving Paycheck Protection Program forgiveness applications on Oct. 2, according to an SBA news release.
To learn more about the simpler loan forgiveness application, including instructions for filling out the new form, visit the SBA website.
The ADA strongly supports legislation to streamline forgiveness for the Paycheck Protection Program. In July, the Senate introduced the Paycheck Protection Program Small Business Forgiveness Act, which calls for loans less than $150,000 to be forgiven upon the completion of a one-page document. Also in July, the ADA signed onto a coalition letter that estimated Paycheck Protection Program loans under $150,000 accounted for 86% of the total recipients of the loans, but less than 27% of Paycheck Protection Program loan dollars overall.
For more information about the ADA’s advocacy efforts during COVID-19, visit ADA.org/COVID19Advocacy.