The Small Business Administration (SBA), in consultation with the U.S. Treasury Department, released a simpler loan forgiveness application for business owners who received Paycheck Protection Program (PPP) loans of $50,000 or less. The new application attempts to streamline the PPP loan forgiveness process and provide administrative relief to small businesses.
“[This] action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” Treasury Secretary Steven Mnuchin said in a prepared statement. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”
Borrowers that use the new application form are exempt from reductions in the borrower’s loan forgiveness amount based on reductions in full-time equivalent employees or reductions in employee salary or wages.
The new form also does not require borrowers to show the calculations they used to determine their loan forgiveness amount. However, the SBA may request information and documents to review those loan forgiveness calculations as part of its review process.The SBA published a document with instructions to help borrowers fill out the new application form.
In a public statement, the National Association of Home Builders said the new loan forgiveness application is a “positive development.” The NAHB has been advocating for the creation of a more simplified and streamlined forgiveness process for PPP loans. The NAHB also reiterated its calls for the White House and Republican and Democratic leaders to work swiftly to push through a coronavirus stimulus package.
This article originally appeared in Remodeling's sister publication, ProSales.
