Late into the night on December 21, 2020, Congress—on page 2055 of 5593 total pages of the Consolidated Appropriations Act, 2021—added Sec 307: Simplified Forgiveness Application (for PPP Loans).
The “Simplified Application” applies to any PPP Loan “up to $150,000”. Eligible recipients can have their PPP Loan forgiveness with their lender with a 1-page form – that “shall be established by the (SBA) within 24 days of signing this Legislation”. This 1-page forgiveness application will only require the eligible recipient to provide:
- A description of the number of employees the eligible recipient was able to retain because of the covered loan
- The estimated amount of the covered loan amount spent by the eligible recipient on payroll costs; and
- The total loan value
Yes…that is it! Talk about streamlined.
To sweeten this clarification, Congress further stated that, “An eligible recipient of a covered loan that is not more than $150,000 shall not, at the time of the application for forgiveness, be required to submit any application or documentation in addition to the certification and information required to substantiate forgiveness.”
In summary: Your lender is not required to request anything from you, other than the 3 statements above and your certification that all data is accurate.
This is fantastic news for small businesses with PPP Loans under $150,000.