The COVID19 Relief bill includes some changes to PPP loans under $150K. These changes apply to both the original PPP loans and the PPP second draw which should be available sometime in January.
The bill allows 24 days for the SBA to come up with more simplified procedures for the loans under $150,000. Currently the PPP Forgiveness application Form 3508S is available only to loans under $50,000 so we can expect something similar to the 3508S to be made available to loans up to $150,000 now. The bill provides that the new simplified procedures shall be not more than 1 page in length and shall only require that the borrower provide a description of the employees retained, the estimated amount spent on payroll and the total loan amount.
For a business with a loan of less than $150,000 it would probably be wise to wait for this new forgiveness application to come out to save yourself the time and energy of otherwise filling out the 3508EZ or the 3508.
More good news is that if you do apply for and receive a PPP second draw, these simplified forgiveness procedures for loans up to $150,000 will also help save you time when applying for the PPP second draw forgiveness. Contact any member of Our Leadership team for more information.