Source: United States House of Representatives – Congresswoman Cindy Axne (IA-03)
October 13, 2020
PPP borrowers with loans of up to $50,000 can use the simpler application to get their loan forgiven
Today, Rep. Cindy Axne (IA-03) shared details on how Iowa small businesses can use the new simplified Paycheck Protection Program (PPP) loan forgiveness application released by the Small Business Administration (SBA).
The new application form is available for borrowers with PPP loans of $50,000 or less, including sole proprietors and independent contractors.
Two weeks ago, Rep. Axne led a letter to the SBA and Treasury Secretary asking them to begin those approvals and for an explanation of the delays. After her letter, the SBA announced it is now approving PPP forgiveness applications.
“I’m glad to see the SBA and Treasury taking steps to make it easier for small businesses to apply for loan forgiveness and beginning to approve the applications they’ve already gotten, much like I asked them to do,” said Rep. Axne. “For a business who took out a $25,000 loan, spending thousands of dollars preparing documentation to get that loan forgiven at a time like this is a cost they simply can’t afford. More than two-thirds of all PPP loans were for less than $50,000, so this will help get forgiveness to the smallest businesses who need it most.”
The new form reduces the amount of paperwork required for most borrowers significantly.
Borrowers will now able to complete a simple certification for most requirements and submit documentation only for the expenses they’re applying for forgiveness on. Since the eligible time period for PPP expenses has been extended to 24 weeks, most borrowers will only need to submit documentation of their payroll expenses.
Borrowers can apply for forgiveness after the covered period (24 weeks from when they received their PPP funds for most borrowers, but some can choose to use 8 weeks).
The updated application form and instructions are available on the SBA’s website or through the PPP recipient’s lender. Borrowers should contact their lender to submit the forgiveness application.