On December 21, 2020, the U.S. Senate and House of Representatives voted to approve the Consolidated Appropriations Act of 2021.
The legislation added direction for a simplified application for Paycheck Protection Program (PPP) covered loans up to $150,000.
Sec 307 of Title III – Continuing the Paycheck Protection Program and Other Small Business Support in the Act instructs that a PPP loan that is not more than $150,000 will be forgiven if the eligible recipient:
- Signs and submits to the lender a certification, including
- A description of the number of employees the eligible recipient was able to retain because of the PPP
- The estimated amount of the covered loan amount spent by the eligible recipient on payroll costs
- The total loan value
The eligible recipient of these loans is not required to submit any documentation in addition to the certification and information required to substantiate forgiveness.
The act also repeals the requirement that PPP borrowers deduct the amount of any EIDL advance from their PPP forgiveness amount. So now the total PPP forgiveness should not be reduced due to the EIDL advance. The effective date for this change dates back to the enactment of the CARES Act.
The SBA must create the simplified application form within 24 days of the bill’s enactment. The form was released on January 19, 2021, and can be found here.
We will provide updates as the SBA issues the simplified application form and instructions. If you have any questions, please reach out to your personal Sciarabba Walker contact or email us at firstname.lastname@example.org.