PPP forgiveness application simplified for smaller loans

Published on October 13, 2020
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Borrowers who took out Paycheck Protection Program (PPP) loans of $50,000 or less can take advantage of a simplified forgiveness application announced last Friday, October 9, by the U.S. Small Business Administration (SBA) and U.S. Department of Treasury.

This application, SBA Form 3508S, requires fewer calculations and less documentation, according to the administration’s interim final rule and instructions. Also, for these loan holders, there will not be reductions to the forgiveness amount based on workforce retention or salary/wage decreases. However, borrowers must still calculate their payroll and non-payroll costs to ensure they do not exceed the statutory requirements that 60% of PPP funds be used for payroll and 40% for nonpayroll expenses.

The new application and rules apply to 3.57 million PPP loans, according to SBA and Department of Treasury. Nationally, approximately 56% of veterinary practices obtained PPP loans, and 22% of those were for less than $50,000. 

Find more information about the updated form and application process on the AVMA’s COVID-19 small business loans webpage

The simpler application was released as Congress and the White House remain at a standstill on COVID-19 stimulus negotiations. AVMA continues to advocate for provisions that are important to the veterinary profession: 

  • Restoring the federal tax deductions for forgivable expenses paid with PPP funds
  • Simplifying the loan forgiveness process for loans totaling $150,000 or less, which make up about 80% of veterinary practice loans
  • Temporary, targeted business liability protections for employers acting in good faith
  • Expanding eligibility of the PPP program to include 501(c)(6) nonprofit organizations


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