Tax & AccountingOctober 12, 2020

SBA and Treasury Issue Simplified PPP Forgiveness Process for Loans of $50k or Less

SBA and Treasury Issue Simplified PPP Forgiveness Process for Loans of $50k or Less

On October 8th, the SBA and Treasury rolled out a simpler PPP forgiveness process for loans $50,000 or less. 

Instructions for the new $50k PPP forgiveness form say it “requires fewer calculations and less documentation for eligible borrowers” and borrowers “are exempt from reductions in loan forgiveness amounts based on reductions in [FTE] employees or in salaries or wages”.

The new IFR also addresses the lender review process for ALL loans. Appears there is no need for lender to perform a good faith review on all costs…just those needed to get 100% forgiveness.

Here is a link to a good summary that also contains links to the IFR and the PPP loan forgiveness applications for loans $50K or less.

By Mark Friedlich, Esq., CPA.

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Mark Friedlich
Author at Tax & Accounting
Mark Friedlich, a CPA & tax lawyer, is the principal international & corporate indirect taxation analyst for Wolters Kluwer Tax & Accounting. He is a member of the U.S. Senate Finance Committee’s Chief Tax Counsel’s Advisory Board, advisor to 14 state taxing authorities, and a member of the American Bar Association’s Tax Section and AICPA’s Tax Section leadership teams. Prior to joining Wolters Kluwer he was a Managing Tax Partner at PricewaterhouseCoopers.