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October 29, 2020
SBA New PPP Application
While Congress has made no moves toward PPP loan forgiveness simplification, the Small Business Administration (“SBA”) and the Department of the Treasury issued an Interim Final Rule (“IFR”) and a streamlined PPP forgiveness application for loans of $50,000 or less. The new application exempts qualified borrowers from the complex loan forgiveness restrictions caused by reductions in employee headcount and/or wages. This is welcomed relief for recipients of smaller loan amounts. They can receive full forgiveness despite workforce or wage reductions.
In addition to the application, lenders still require documentation of qualified expenses and borrowers must also attest/certify to the accuracy of the reported information and calculations on the simplified form.
With this new IFR, there are now three PPP loan forgiveness applications:
Other PPP Loan Considerations
At the risk of sounding like a broken record, there are still many details that are unresolved and need clarification. This leaves many businesses wondering what to do. Important considerations include:
What should I do?
We wish we had the ideal answer for you. Only you can make that decision and there is widespread debate in the CPA, legal and banking communities on what actions are best to take. The following actions might be considered:
We will continue to closely monitor the rulings about PPP loans and forgiveness and share that information with you as it becomes available. We are your advocates and are in your corner!
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