The new law signed on December 27, 2020 includes a provision to simplify the PPP loan forgiveness application process for loans of $150,000 or less. The SBA has 24 days from the enactment of the law to produce this new application. We are waiting for more guidance from the SBA. Once the new application is available, we will post an alert on the COVID-19 Resource Page.
You may continue to move forward and apply for loan forgiveness using one of the existing applications (Form 3508, 3508EZ or 3508S). However, in light of the new bill, customers with loans $150,000 or less may want to wait to apply using the new simplified application form.
Unlike larger loans that require borrowers to retain relevant supporting documentation for six years, for loans up to $150,000, borrowers will only be required to retain applicable documents for four years, as to employment records, or three years as to other records. These changes are retroactive to the passage of the CARES ACT.