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The Small Business Administration (SBA) Tuesday issued an interim final rule (IFR) regarding paycheck protection program (PPP) loan forgiveness and has updated several of its loan forgiveness application forms to reflect changes made.

The IFR restates the current forgiveness rules with additions from the Consolidated Appropriations Act, which includes additional non-payroll exemptions eligible for forgiveness.

In addition, the IFR exempts borrowers with loans under $50,000 from taking employee or salary reductions into account when applying for forgiveness. The IFR also notes borrowers with loans under $150,000 should use SBA form 3508S, which provides NAFCU-sought simplification in the process, when applying for forgiveness.

Under the IFR, lenders are responsible for reviewing a borrower’s application for forgiveness and supporting documents and must make a forgiveness decision within 60 days.

The loan forgiveness application forms that have been revised include:

• Form 3508;
• Form 3508EZ; and
• Form 3508S.

Access the full IFR here. View NAFCU’s PPP FAQs and access all NAFCU's coronavirus resources here.

The SBA is expected to update its PPP FAQs to reflect changes to loan forgiveness. Stay tuned to NAFCU Today for the latest on the program from the SBA, Treasury and Congress.