Published On: October 9th, 2020|By |Categories: Businesses, COVID-19, Nonprofits|0.7 min read|

Last night the SBA and the Treasury Department issued a new Interim Final Rule (IFR) that addresses forgiveness for loans under $50,000. The new IFR for borrowers of $50,000 or less addresses the following:

 

  • These borrowers can file for forgiveness using a new streamlined form – SBA 3508S
  • These borrowers will no longer be subject to forgiveness reductions if (1) there was a reduction in their FTEs or (2) a reduction in employee salary or wages.

 

Other than relief from the FTE calculations, borrowers using this new form will still need to provide documentation to their lender along with the new forgiveness application.

 

Here are links to the IFR, the Form SBA 3508S and instructions for the SBA3508S:

Download Form 3508S

Download the instructions from Form 3508S

Read the interim final rule

 

If you have further questions, please contact us at loan.assistance@inserocpa.com.

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About the Author: Timothy McLaughlin

Timothy has 30 years of audit and accounting experience and is the head of our Audit and Business Advisory Services Group. Timothy is the lead partner on a wide variety of engagements. Timothy provides consulting services to manufacturing, real estate, service, and high tech clients. Timothy also serves as our Quality Control/Auditing and Accounting Director and consults with our partners and managers as well as the senior management of our clients regarding technical audit and accounting issues. Timothy also provides litigation support and expert witness services on a variety of accounting and auditing engagements.

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