SBA Releases Guidance on Simpler Forgiveness for Small PPP Loans
On October 8, the Small Business Administration (SBA) and the Treasury Department released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
Borrowers that use simpler PPP loan forgiveness application (SBA Form 3508S) are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. SBA Form 3508S also does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process.
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2 and has also posted instructions for completing the simpler loan forgiveness application.
Impact on General Dentistry: AGD is pleased that SBA and Treasury have taken these steps to streamline the PPP forgiveness process for borrowers with loans of less than $50,000. AGD continues to advocate for additional streamlining and reforms of SBA's PPP loans, such as extending more straightforward forgiveness to a broader pool of borrowers. PPP loans have been critical in providing dental practices with a line of support during the COVID-19 crisis. AGD hopes Congress and the Administration will work to improve and expand the program's utility.
Borrowers that use simpler PPP loan forgiveness application (SBA Form 3508S) are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. SBA Form 3508S also does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process.
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2 and has also posted instructions for completing the simpler loan forgiveness application.
Impact on General Dentistry: AGD is pleased that SBA and Treasury have taken these steps to streamline the PPP forgiveness process for borrowers with loans of less than $50,000. AGD continues to advocate for additional streamlining and reforms of SBA's PPP loans, such as extending more straightforward forgiveness to a broader pool of borrowers. PPP loans have been critical in providing dental practices with a line of support during the COVID-19 crisis. AGD hopes Congress and the Administration will work to improve and expand the program's utility.