Good news for businesses and lenders alike!
The U.S. Small Business Administration (SBA) and Treasury Department announced a simpler loan forgiveness application. This applies for businesses who have acquired Paycheck Protection Program (PPP) loans of $50,000 or less. It simplifies the process for both the PPP borrowers and lenders.
Borrowers of $50,000 or less are exempt from the penalties for reductions in full-time equivalent employees and reductions in employee salary and wages.
On October 2, 2020, the SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers.
SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.
For more information, please see the links below, or contact us at 401-831-0200.