UPDATED October 8, 2020
SBA and Treasury Announce Simpler PPP Forgiveness of Loans $50,000 or Less
Hello Summit Bank Paycheck Protection Program clients! To start, we appreciate and thank all of our borrowers who have submitted packages for PPP Loan Forgiveness. Our Summit Bank SBA team is ready to accept all applications. The SBA portal opened on August 10. We started receiving payment on our loans on October 7. The SBA has up to 90 days to remit payment and Summit Bank has up to 60 days to determine the forgiveness amount and submit to the SBA for review and payment.
All borrowers who have their loan forgiveness in full or in part will be notified within 30 days of the SBA submitting funds.
Effective the evening of October 8, the U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for PPP loans of $50,000 or less. This action streamlines the PPP forgiveness process for the aforementioned size loans to provide financial and administrative relief to America’s smallest businesses. The new form is linked below. Borrowers are still required to submit documentation together with the SBA Form 3508S (see page 3 of the SBA Form 3508S instructions for a list of what a needed).
Thank you for choosing Summit Bank. If you have any questions, please contact our SBA team at firstname.lastname@example.org. Thank you!
SBA Streamlines PPP Forgiveness Application
On Wednesday, June 17, 2020, the SBA released a three-page “EZ” Paycheck Protection Program loan forgiveness application (Form 3508EZ), requiring less documentation and fewer calculations, for borrowers who meet certain criteria. Borrowers eligible for Form 3508EZ:
- Have applied for the PPP loan as self-employed, independent contractor, or sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (except for those who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
Updates to the regular SBA Form 3508 were made to reflect the changes made by Congress in the PPP Flexibility Act.