It's been a while but we finally have a little bit of good news to report on the forgiveness end of the PPP loan.
We are still hoping for full forgiveness on any loans under $150,000 but that has not passed in Congress (yet).
So the next best thing is a simplified application that eases up on some of the restrictions - which is what has just been released for loans under $50,000.
If your loan amount is under $50,000 - you no longer have to prove that you did not reduce your full time equivalent employees during the applicable period and you do not need to actually submit calculations of the payroll and other amounts being claimed. The supporting documentation could be requested by the SBA so please make sure you have it on file.
Follow this link for the new application:
<https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf>
instructions are here:
https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S-Instructions.pdf
If you are anxious to put this in the rear view mirror and have a loan that is under $50k you may wish to take this route. Some banks are now accepting applications although I know of a few that still are not, so please check with your lender if you are ready.
If you need our assistance with the forgiveness application process, as always we are available to help. A separate engagement letter will be required for this assistance since it is outside of our normal services, so please let us know if you would like us to send you one.
We are also still hoping for a change in the treasuries position re: the taxation of the forgiven loans... stay tuned!