The Treasury and the Small Business Administration (SBA) have announced some relief to qualify for debt forgiveness for businesses that borrowed a Paycheck Protection Program (PPP) loan of $50,000 or less.
The requirement to reduce debt forgiveness for reductions of full-time equivalent employees or reductions in salaries or wages has been waived for these borrowers.
The SBA estimates there are about 3.57 million outstanding PPP loans of $50,000 or less, totaling $62 billion of $525 billion in PPP loans.
Remember that, to qualify for forgiveness, at least 60% of the loan must still be used to pay qualified employment expenses, with the remainder used for other qualifying expenses, such as qualifying mortgage interest, business rent and lease payments and covered utility payments during the Covered Period.
Here are links to new Form 3508S and instructions that incorporate the change.
Here is a link to the updated Interim Final Rules for the announcement.
I recommend that you work with a CPA when processing the paperwork for your PPP loan.