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Rajiv Behti, CPA, MS, Tax Stockholder in the San Francisco office.
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Forgiveness Simplified for PPP Loans Up to $50k


RINA Alert --  October 12, 2020 | Volume 18, Issue 29 

On October 8th, the Department of Treasury and the U.S. Small Business Administration (SBA) issued a new interim final rule (IFR) providing new guidance regarding the forgiveness and loan review processes for PPP loans of $50,000 or less. These loans amount to almost 70% of all PPP loans.
This announcement comes on the heels of one from the previous week which had the Treasury Department stating that it would begin processing the 96,000 PPP loan forgiveness applications it has received since August after receiving complaints from banks, business owners and lawmakers on the delays in the process. For more information, please read RINA’s Managing Director of Audit and Accounting Howard Zangwill’s article SBA Says PPP Loan Forgiveness is Pending.

Under the new direction, PPP borrowers of $50,000 or less can sign a SBA Form 3508S attesting that the money was spent per the program requirements and the loans will be forgiven.

 Borrower Information
The application includes certifications from the borrower but does not require calculations to be submitted with the application. They must submit documentation verifying forgivable payroll and non-payroll expenses. 
Documents that Each Borrower Must Maintain but Do Not Need to Submit
Borrowers are only required to submit documentation that confirms forgivable payroll and non-payroll expenses. However, they must retain all PPP Loan documentation for six years after the date the loan is forgiven or repaid in full.
This documentation includes all records relating to the borrower’s PPP loan, including documentation:

  • Submitted with the PPP loan application
  • Supporting the Borrower’s certifications as to its eligibility for a PPP loan
  • Necessary to support the borrower’s loan forgiveness application
  • Demonstrating the borrower’s material compliance with PPP requirements

Lender Information
Once the application is received, the lender is required to confirm to the SBA their receipt of the application and receipt of the accompanying documentation. In the IFR, the SBA reiterated its previous guidance that “providing an accurate calculation of the loan forgiveness amount is the responsibility of the borrower.” Lenders will not be required to verify the accuracy of calculations submitted by the borrower.
PPP borrowers have until 10 months after their covered period expires to apply for loan forgiveness. Lenders have 60 days after receiving a complete forgiveness application to issue a decision to the SBA. The agency then has 90 days to render its own determination on whether to forgive the loan.
If you have questions or would like assistance as you work through the loan forgiveness process, please reach out to the RINA CARES team at

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