Friday, October 9, 2020
1) The SBA has released a new form (3508S) for borrowers seeking forgiveness if the amount of the loan was less than $50,000.
2) Loan forgiveness is not automatic.
3) Borrowers who use this form are not subject to forgiveness reduction because there were reductions in the pay of an employee.
4) Borrowers who use this form are not subject to forgiveness reductionif there was a reduction in FTE (full time equivalents). This basically means if the number of employees decreased during the covered period the amount of forgiveness does not decrease just because of it.
5) The borrower does not have to show the calculations used to determine their loan forgiveness amount.
6) The borrower is still responsible to calculate the loan forgiveness amount and to be prepared to provide this information if requested.
7) The new form may be simpler but it is still complicated and it is advisable to consult a professional for its preparation.
Copyright. Accounting World