On October 8th, the Small Business Administration (SBA) released a much-anticipated, streamlined loan forgiveness application for Paycheck Protection Program loans totaling $50,000 or less.
The two-page forgiveness application includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Other documentation related only to certifications must be retained for six years. If you only use PPP funds for payroll costs, your forgiveness application will be much less burdensome – all borrowers can submit an application that is 100% payroll costs (at their option).
For borrowers with loans $50,000 or under, please see the attached application (3508 S) and corresponding instructions and checklist. We encourage all borrowers with loan amounts of $50,000 or less to submit the attached application at their earliest convenience. Once you have completed your application and have gathered your supporting documentation please submit securely through DocumentGuardian (click this link to submit). If you would like to have a copy emailed to you through DocuSign for electronic signature, please contact your Relationship Manager.
Congress may still pass legislation to increase the amount for streamlined forgiveness to $150,000, but is unlikely that anything will occur this close to an election. It may be until January or February before additional legislation is passed which affects the PPP. If your loan amount is between $50,000 and $150,000, the Bank recommends waiting until the beginning of the year to see if additional legislation is passed.
If your loan amount is over $150,000 you may submit a forgiveness application at any time, or wait to see if your loan is impacted by upcoming legislation.
Please contact your Relationship Manager if you have any questions.
