PPP Loan Forgiveness Update

Published: Oct. 10, 2020

The Small Business Administration (SBA) issued an interim final rule that simplifies the loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.

ISSUE:

Last night, the SBA released an interim final rule that simplifies the loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.

IMPACT:

AFBF continues to advocate for S. 4117 and H.R. 7777, the Paycheck Protection Program Small Business Forgiveness Act, which would forgive PPP loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. Simplifying the loan forgiveness process would alleviate hours of paperwork for borrowers. A variation of this act has been included in the Senate and House proposed COVID bills.

The updated interim final rule can be viewed here.

The simplified application form can be viewed here.

The instructions to complete the simplified form can be viewed here.

Farmers and ranchers should consult with their accountant, tax preparer and/or financial advisor about the PPP application and loan forgiveness process to ensure all the proper documentation has been completed and reviewed.