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Detroit Regional Chamber > SBA Provides Simplified Process for PPP Forgiveness for Loans of $50,000 or Less

SBA Provides Simplified Process for PPP Forgiveness for Loans of $50,000 or Less

October 16, 2020
The U.S. Small Business Administration released a simplified loan forgiveness application Thursday for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to the more than 100,000 small businesses here in Michigan that have received PPP loans to date.

The new loan forgiveness form requires fewer calculations and less documentation for eligible borrowers, including the elimination of a requirement to show calculations used to determine borrower loan forgiveness, through SBA may still request that information as part of the review process. Borrowers with loans of $50,000 or less are also now exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages.

Information on new instructions for PPP borrowers of $50,000 or less can be found here, with the new, simpler form for PPP forgiveness available here.

Michigan businesses received 128,159 Paycheck Protection Program loans, as of August, totaling more than $16 billion in support. Additionally, 83,926 businesses received SBA Disaster Assistance EIDL loans totaling $4.35 billion.

View the full announcement from the Michigan Economic Development Corp.