COVID-19 Update 10/12/2020

 

SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less

On October 8, the U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars.

SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.

But note these cautionary words from Consumer Bankers Association President and CEO Richard Hunt, who issued the following statement after the Small Business Administration and the Department of Treasury issued their release:   

“While we appreciate SBA and Treasury attempting to streamline the forgiveness process, it is apparent Congressional action is needed for the true streamlined forgiveness mom-and-pop businesses need. This newest process still requires a significant investment of time and resources from small business owners – resources which could be better spent paying their employees and supporting local economies.” 

SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020.  SBA will continue to process all PPP forgiveness applications in an expeditious manner.

View the simpler loan forgiveness application.
View the instructions for completing the simpler loan forgiveness application.
View the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.

 

Note: This content and analysis is for informational purposes only and should not be construed as legal advice. Please consult your legal and financial advisors for detailed information before taking any action.

Written by aasp@aaspmn.org

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