Many of us have been anxiously awaiting for Congress to pass a new stimulus package that would include language around automatic forgiveness of PPP loans. Some of the bills were pushing for loans of less than $150k to be automatically forgiven; other bills had language for loans of less than $50k to be automatically forgiven.
As you probably know, Congress has done nothing and the President recently informed the GOP to cease all discussions related to further stimulus bills.
Today DOES hold good news for businesses that have PPP loans of less than $50,000!
Here's the deets:
On October 8, 2020 the SBA came out with a whole new form and process for businesses who have loans of less than $50,000.
What it isn't: automagical forgiveness
What it is: a super simplified form and new rules that say borrowers who took less than $50k are exempt from reductions in forgiveness based on FTEs or reductions in employee salaries/wages.
Now, you STILL have to calculate your forgiveness amount (which is MUCH easier since there are no pesky FTEs to worry about) and you have to submit your payroll records.
But that's about it!
We're still nerding out and researching the guidance that the SBA released to make sure we understand ALL the details.
We'll be going live in our Facebook group Thursday, October 15, 2020 to tell you all the things about this new guidance! You can join our Facebook group here if you haven't already done so.
Click below so we can keep you updated on the latest developments with the EIDL, the PPP, tax deadlines, and all the other important information you need to run your business.