Paycheck Protection Program News
More Paycheck Protection Program news for your you to use.
According to a recent release from the Small Business Administration, borrowers can apply for forgiveness of their PPP loan using new SBA Form 3508S if the total PPP loan amount they received from their lender was $50,000 or less. “SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. Borrowers that use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages,” says the form instruction.
SBA Form 3508S doesn’t require borrowers to show the calculations used to determine their loan forgiveness amount. However, the SBA still may request information and documents to review those calculations.
According to an article in Forbes, the new rules “remove the need to show that the borrower did not reduce head count or salaries and, therefore, suffer a reduction in loan forgiveness.” The article noted that the SBA has justified the $50,000 threshold by pointing out that companies that borrowed such a small amount often had one employee at most. This made the head count rules largely moot.
Deadlines Later Than Thought
The Journal of Accountancy has also pointed out that loan forgiveness applications are not due on Oct. 31 as many had thought. This was a misunderstanding due to a date on the form. The JofA notes that “borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement.”
About Atlantic Payroll Partners
At Atlantic Payroll Partners we believe we are the best, local payroll provider to help you grow your business. Even more than that. We’re a professional employment organization that offers an incredible suite of solutions for your business. In addition to offering payroll services we offer, full-service HR, workers’ compensation, accounting, and health care benefits. Our solution suite is back by over 100 years of combined experience in the PEO space.
We’re proud to say that we’ve helped businesses reduce employee turnover, increase revenue, make more money, and lighten their daily load by working with us. Our clients can offer their employees’ health care benefits and access to the same 401k plans that the Fortune 500 companies use without breaking the bank.
We welcome you to continue exploring our website, to learn more about Atlantic Payroll Partners and how we can help improve your business. We do our job, so that you can focus on yours.