For example, the SBA wrote, a borrower with a covered period that ends Oct. 30, 2020, has until Aug. 30, 2021, to apply for forgiveness before loan repayment begins. On Dec. 8, the SBA notified lenders and loan intermediaries to send a 1099-MISC form to any borrowers for the amount forgiven for principal, interest and fees. Stimulus SBA Loan and Forgiveness Program (“Paycheck Protection Program”) As part of the new stimulus package making its way to the House and President for signature this Friday, $349 billion is earmarked to assist small businesses with loans. SBA Forgiveness Form 3508 SBA Forgiveness Form 3508EZ SBA Forgiveness Form 3508S If you are the owner of a small business that obtained a Paycheck Protection Program (PPP) loan, you are most likely aware that the loan can be partially or completely forgiven if you used the loan proceeds for the required purposes. The SBA placed the expiration date in the upper-right corner of the PPP loan forgiveness application forms to comply with the Paperwork Reduction Act. Small Business Administration administrator Jovita Carranza attends a White House news conference on April 2, 2020. The payments were completely forgiven. The Small Business Administration and the Department of Treasury recently issued a set of Frequently Asked Questions about Paycheck Protection Program loan forgiveness. Below is a summary of the key information from the released FAQs: The FAQs clarified that C-corporation owner-employee health and retirement benefits are eligible PPP expenses in addition to their $100,000 salary … SBA officials say they opened the system for forgiveness Aug. 10, two days after the program closed. Information about how to apply for Paycheck Protection Program loan forgiveness The loans will be administered through the SBA 7a loan program via […] But the payments weren’t exactly free money, as many entrepreneurs hoped. Jabin Botsford Business owners who borrowed $50,000 or less through the Small Business Administration’s emergency loan program learned last week that their debts are forgiven entirely — provided they file the right paperwork. The SBA and Treasury reduce the paperwork for small businesses seeking forgiveness of loans up to $50,000 under the Paycheck Protection Program. Scroll to the bottom of it and you'll see 3 links, one of which is the application to submit to your lender and another is instructions. Lenders are expected to perform a good-faith review, in a reasonable time, of the borrower’s calculations and supporting documents concerning amounts eligible for loan forgiveness. Updated June 1, 2020: The House passed the Paycheck Protection Program Flexibility Act on May 27, 2020, which attempts to ease restrictions on small businesses as they seek loan forgiveness … The agency has 90 days to consider each application after … (This SBA procedural notice explains how the program worked.) Subject line reads: SBA and Treasury Announce Simpler PPP Forgiveness for Loans of 50K or less.