There is new clarification from the Small Business Administration for the Paycheck Protection Program (PPP) and how businesses can get their loans forgiven.
This week, the SBA filed its 19th Interim Final Rule (IFR), which gives clarification on loan forgiveness for people who are self-employed, freelancers or independent contractors. It also provides a new easier form for qualifying for loan forgiveness, the 3508EZ form.
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In addition, the IFR also extended the period of loan forgiveness from eight weeks to 24 weeks, reducing the amount required to be spent on payroll from 75% to 60%.
“The certifications that are on there still have to be met, and the certifications will still be difficult for some businesses,” said Adam Markowitz, a central Florida enrolled agent. “There are some businesses that are not going to be able to say that they kept their same number of full-time employees as compared to January first.”
But if a small business is able to meet the guidelines, it can apply to have it loan forgiven.
“There is a lot more that we need from Treasury and SBA on this, but it is definately a form that puts businesses in the right direct,” said Markowitz.
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