A narrow class of PPP borrowers got some good news on Thursday, October 8. The SBA released a streamlined application — Form 3508S designed specifically for those the borrowed under $50,000.
- The new form requires fewer calculations and less documentation.
- Borrowers using Form 3508S are exempt from reductions in loan forgiveness stemming from reductions in full-time equivalent employees or from reductions in salaries or wages.
- CDS can help you navigate PPP loan forgiveness.
SBA clarifies deferral period for PPP loan payments in FAQ
The new guidance, found in question No. 52 in the SBA’s frequently asked questions document for the PPP, clarifies that the deferral period extension automatically applies to all loans–10 months after the end of the borrower’s loan forgiveness period. Previously, the deferral period could end after 6 months.
Now What?
Clients may still want to wait to apply for PPP loan forgiveness for tax planning purposes and as we wait for further guidance. We continue to monitor legislative updates daily and will update you as we receive new developments.
Reminder: It’s important that you coordinate with all grants, PPP loans or other economic development stimulus relief that you have received. CDS can help you navigate.
Let us exceed your expectation. Contact one of our experts at (888) 388-1030.
