The SBA has simplified the Payroll Protection Loan Program (PPP) forgiveness applications for PPP loans under $50,000. The new 3508S form is only one page. However, with the average PPP loan $150,000, bankers and borrowers want the simplified application limit increased to $150,000 or less.
Bankers are advising borrowers to wait and see what transpires in the coming months. The deadline for applying for forgiveness is ten months after the period covering the loan ends. For most borrowers, the covered period ended in June or July 2020, which means the forgiveness applications are not due until the first quarter of 2021. Many advisors believe the simplified application loan size limit will be increased by then.
If the limit is not increased, borrowers requesting forgiveness of loans greater that $50,000 but less than $2 million will need to complete form 3508EZ, a 3-page form that requires forgiveness amount calculations not required on the simplified 3508S form.