Updated: Nov 13, 2020
Per recent joint guidance from the Treasury Department (IRS) and the SBA (Small Business Administration), there is now simpler loan forgiveness for loans under $50,000.
The one-page Forgiveness Application is straightforward with mostly boxes to check and documentation to attach, making it fairly simple for most qualified borrowers.
Here are a few of the basics, and links to the details.
The new application requires few calculations and less documentation.
You are exempt from the full-time equivalent employee requirement [this is a significant burden lifted]
You are not required to show your calculations for the loan forgiveness amount
You can fill out SBA Form 3508S and submit it to your lender, or complete the application electronically through your lender
Documents required: a) a payroll report from your payroll processor for the period covered (8 weeks, or 24 weeks), b) payment receipts, cancelled checks, or account statements showing the amount of employer contributions to health insurance and retirement plans, c) for rents, copy of your lease and cancelled checks, or lessor account statements, d) for utilities provide copies of invoices from February 2020 through the covered period and cancelled checks, or account statements verifying the eligible payments.
Click here to view the simpler loan forgiveness application.
Click here to view the instructions for completing the simpler loan forgiveness application. Although these instructions make the process seem more complex than it really is, they should be helpful. My suggestion is to start with the form itself, then come back to these instructions if you need more information or clarity.
If you need assistance, feel free to contact our office.