Can you explain the new guidance concerning forgiveness and loan review processes for PPP loans of $50,000 or less?
That was the question Jeffrey Levine, director of advanced planning at Buckingham Wealth Partners, answered in this episode of Ask the Hammer.
So, first some facts. In October, The U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
The action, according to the release, streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses.
According to the release, the PPP has provided 5.2 million loans worth $525 billion to American small businesses. Read the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.
So, if you're a business owner and you took out a PPP loan that was less than $50,000, you're feeling pretty good today because your loan forgiveness application process just got dramatically easier, said Levine.
"And if you did, or you want to reduce your staff going forward, you do not have to worry about those reductions in payroll impacting the amount of the loan that is forgivable going," he said.