SBA, Treasury Department Simplify PPP Forgiveness For Loans Of $50,000 Or Less
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, has released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. The update streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses.
“The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs,” says Treasury Secretary Steven T. Mnuchin. “Today’s 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. 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.”
SBA Administrator Jovita Carranza adds, “Nothing will stop the Trump Administration from supporting great American businesses and our great American workers. The Paycheck Protection Program has been an overwhelming success and served as a historic lifeline to America’s hurting small businesses and tens of millions of workers. The new form introduced today demonstrates our relentless commitment to using every tool in our toolbelt to help small businesses and the banks that have participated in this program. We are continuing to ensure that small businesses are supported as they recover.”
In their announcement, the SBA and the Treasury also note that they have eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.
TSBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2. Click here for the simpler loan forgiveness application and here for instructions on how to complete it. Click here to view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.