New Forgiveness Application and Relief from Forgiveness Reduction for PPP Loans under $50,000 and Limitation of Lender Review of Expenses that Exceed Those Necessary for Forgiveness

The latest Interim Final Rule issued by the SBA on October 8, 2020 addresses the following:

• Another new forgiveness application has been issued: SBA Form 3508S
• Borrowers with a PPP loan of $50,000 or less, other than any borrower that together with its affiliates received loans totaling $2 million or greater, may use SBA Form 3508S (or lender’s equivalent form) to apply for loan forgiveness
• A borrower that uses SBA Form 3508S (or lender’s equivalent form) is exempt from any reductions in the borrower’s loan forgiveness amount based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages that would otherwise apply
• Limits the lender’s need to review every submitted expense when a borrower submits expenses in excess of the principal loan amount necessary to qualify for full forgiveness 

The SBA’s Interim Final Rule can be located here:  https://home.treasury.gov/system/files/136/PPP--IFR--Additional-Revisions-Loan-Forgiveness-Loan-Review-Procedures-Interim-Final-Rules.pdf

Form 3508S can be located here:  https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf 

Instructions for Form 3508S can be located here:  https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S-Instructions.pdf 

The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning these new statutory obligations and other matters related to    COVID-19.