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.
But accountants are urging costumers to hold off applying for forgiveness to see if the government further sweetens the pot.
The Small Business Administration and U.S. Treasury issued the new guidance for small-business borrowers with loans of $50,000 or less under the Paycheck Protection Program, or PPP.
The PPP loans were included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which Congress passed earlier this year to provide emergency assistance for individuals, families, and businesses affected by the coronavirus pandemic.
Business owners who borrowed $50,000 or less can fill out a simplified one-page form and can ignore some of the calculations required of other borrowers. A link to the Form 3508S is available at sba.gov, or by