New Legislation Passed December 27th Impacts PPP Loan Forgiveness for Loans under $150,000

Please note I am posting this for informational purposes only, and it does not replace consulting with your accountant, lending institution, advisor etc.

For those therapists who have not yet applied for loan forgiveness for their PPP loans:
New legislation, signed into law on December 27, 2020, includes provisions that further simplify the PPP loan forgiveness application process for loans of $150,000 or less, whereby a borrower signs and submits a simplified certification to the lender, among other requirements. The SBA will issue further clarification about the simplified forgiveness application form in the coming weeks.

The legislation also expands the list of allowable and forgivable expenses, which apply to existing PPP loans for which a borrower has not yet received forgiveness. Additionally, the legislation provides for a more flexible covered period. For details on eligibility and requirements, please visit the SBA website.
In addition, the SBA will be sending out additional guidance in the coming weeks, so it seems like if you received $150,000 or less and  if you have not yet completed the loan forgiveness paperwork, it might be in your best interest to wait to apply. In addition, if you have submitted your loan forgiveness paperwork to your lending institution, find out whether they have submitted it to the SBA; if not, you may still be able to withdraw the application, and then re-apply when the full new guidance is issued.
Here are links for further details in the coming weeks; it is good to keep checking because the updates are slowly being added to the websites:  SBASBA forgiveness factsheetU.S. Treasury Assistance for Small Businesses, and U.S. Treasury FAQ

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