The United States Small Business Administration (SBA) has issued an interim final rule which states that Paycheck Protection Program loan borrowers of $50,000 or less are exempted from any reductions in forgiveness based on reductions in full-time-equivalent (FTE) employees and reductions in employee salary or wages. However, borrowers must still supply the lender with the same payroll expense and qualified nonpayroll cost documentation as previously required.
The SBA also released a streamlined application for such loans, Form 3508S. This application removes calculation equations present on the EZ Loan Forgiveness Application. With that said, applicants will need to sign a certification that the proceeds of the loan were for purposes in which they were intended for (at least 60% payroll costs, etc).
If you have any questions, please reach your personal Sciarabba Walker contact or email us at info@swcllp.com.