Simplified Application for Forgiveness on Paycheck Protection Program (PPP) Loans of $150,000 or Less

Simplified Application for Forgiveness on Paycheck Protection Program (PPP) Loans of $150,000 or Less

Section 307 of the Consolidated Appropriations Act (“Act”) introduced a simplified loan forgiveness application process for all PPP loans not exceeding $150,000.

The one page self-certification requires the borrower to attest that they have complied with all the requirements of the PPP loan program as defined under Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)).  Additionally, the borrower will need to disclose the number of employees retained because of the loan, the estimated amount of the loan spent on payroll costs, and the total loan amount.   No other information will be required to be submitted with the certification.  However, PPP borrowers are advised to retain all records verifying compliance with the program requirements.

The Act states that the Small Business Administration will generate the certification no later than 24 days after the bill becoming law (approximately the last week of January 2021).

Here is a link to the text of the bill: Consolidated Appropriations Act, 2021 (house.gov).  Section 307 starts on page 2055 of the nearly 5,600 page bill.