The rules and regulations for applying for forgiveness of Paycheck Protection Program loans continue to befuddle small business owners in New Jersey — and the banks that processed them.
Late Friday, the U.S. Small Business Administration released what it is calling a simpler application process for those who got loans of less than $50,000.
- Click here to view the simpler loan forgiveness application.
- Click here to view the instructions for completing the simpler loan forgiveness application.
- Click here to view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.
U.S. Treasury Secretary Stevin Mnuchin said the action “streamlines the forgiveness process” for PPP borrowers with loans of $50,000 or less — and that the Treasury Department is working to do more.
“We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds,” he said in a statement. “We continue to favor additional legislation to further simplify the forgiveness process.”
It is unclear when more guidance is coming.
It has long been speculated that loans of less than $150,000 — which would be approximately 85% of all loans given — automatically will be forgiven.
Small business owners — and lenders — are eager to get guidance before the next tax reporting season.
According to the SBA, it began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers Oct. 2.
SBA Administrator Jovita Carranza said the new tool demonstrates the SBA’s commitment to small business owners.
“The new form introduced today demonstrates our relentless commitment to using every tool in our toolbelt to help small businesses and the banks that have participated in this program,” she said. “We are continuing to ensure that small businesses are supported as they recover.”