PPP Forgiveness Update – October 2020

Hi there!

Just an update on PPP forgiveness from the SBA. Hopefully with this news, banks will start to open their portals to apply for forgiveness!

On 10/8/2020, The Small Business Administration (SBA) along with the Treasury Department issued new guidance allowing borrowers with PPP loans of $50,000 or less to self-certify they used the money appropriately and receive complete forgiveness.

This latest rule will still require borrowers to provide documentation, such as a payroll provider report but borrowers can use new SBA Form 3508S for their application.

The new rule also removes the need to show that the borrower did not reduce headcount or salaries and, therefore, suffer a reduction in loan forgiveness.

As always, we try to keep you informed of the lastest news and rules that affect your business.