PPP Loan Forgiveness
PPP Loan Forgiveness for Loans Under $50K
Businesses with a Paycheck Protection Program (PPP) loan of $50,000 or less now have a much simpler avenue for loan forgiveness. The simplified forgiveness form (3508S) is a simple form that just has you confirm you spent the funds in the appropriate manner, sign it, and you're done. Spending the funds in an appropriate manner means:
- used to pay costs eligible for forgiveness (payroll, mortgage interest, rent, lease, utilities)
- includes payroll costs equal to at least 60% of the forgiveness amount
- if you used the 24 week covered period, don't exceed 2.5 months worth of 2019 compensation for any owner/self-employed person - capped at $20,833 per person.
- if you used the 8 week covered period, don't exceed 8 weeks worth of 2019 compensation for any owner/self-employed person - capped at $15,385 per person.
You have 10 months from the completion of the covered period to apply for the loan forgiveness. Your lender will most likely prompt you when they are ready for your application.
For more information on the PPP loan forgiveness, you can check this out.
