October 16, 2020: ICYMI—$50K PPP Loans Get Streamlined Forgiveness

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October 16, 2020

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Is your PPP loan under $50K? We’ve got good news

The Small Business Administration (SBA) and Treasury made an announcement late last week with good news for almost 70% of Paycheck Protection Program (PPP) borrowers: PPP loans of $50,000 or less will be eligible for streamlined forgiveness.

Those borrowers can now apply with SBA Form 350S, which is only a page and a half and aims to make the forgiveness process quick and easy. Furthermore, these borrowers will be eligible for forgiveness even if they:

  • Reduced the number of FTE employees, and/or 
  • Reduced employee wages or salaries

Why? Because many of the businesses in this loan category are likely to be sole proprietors, independent contractors, or employers with just one employee. (Just remember: to be eligible for forgiveness you must meet the remaining criteria—even if your loan was under $50,000.) 

The new guidance also clarifies that all PPP borrowers can defer payments for 10 months after the day of the covered period—not just those who received their funds after the passage of the PPP Flexibility Act’s more generous rules.

Read a summary of the latest PPP updates on our blog.

Watch list

How to Offer Employee Benefits That Work for YOUR Budget

It’s been a challenging year for all Americans—from managing our work and health to taking care of our families. Small business owners can make a difference by offering affordable benefits to their teams—and Gusto’s new slate of no-cost and low-cost benefits can help.

Earlier this week, we hosted a webinar designed to help business owners select the right benefits package for their team’s needs and their budget. Check it out here:

Everything You Need to Know About PPP Forgiveness

For many of you, the covered period has recently ended and the window to apply for PPP forgiveness has begun. This comes with questions:

  • What do I need for the forgiveness process?
  • Which application should my business use?
  • How much forgiveness am I eligible for?

Join us and our partners at COVID Loan Tracker on Tuesday, October 20, at 12:30pm PT for a webinar covering all your FAQs. Small business finance expert Andi Smiles will walk through her in-depth guide to applying for PPP forgiveness and provide tools to simplify the process. You’ll also get the latest intel on PPP forgiveness from a panel of SBA reps.

Sign up here.

Top relief options for the week

  • Energize Colorado Gap Fund opened a second round of applications for its small business grant and loan program. Priority will be given to businesses in rural areas, as well as veteran-, women-, and minority-owned businesses. Applications are due by October 26.
  • Business Oregon has made millions in grant funding available for small businesses facing lost revenue in the midst of the COVID-19 pandemic by awarding the final round of its Emergency Small Business Assistance Grant funding to intermediary organizations. 
  • South Dakota’s Small Business and Healthcare Provider Relief Program will utilize up to $580 million in Coronavirus Relief Fund dollars to help South Dakota services negatively impacted by the COVID-19 pandemic. Eligible businesses and organizations will be able to apply for these various grants from October 13–23, 2020.
  • Culture and Arts Relief and Recovery Fund will reimburse businesses and nonprofit organizations in the culture and arts industries up to either $10,000 or $50,000 for costs incurred from the implementation of safety precautions and re-opening costs to prevent the spread of COVID-19.
  • See more relief options in our Small Business Relief Finder.

Want more small business news and resources? Check out past editions in our archive.

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