New PPP Forgiveness Form for Small Loans
Louisiana REALTORS • October 12, 2020
Source: National Association of REALTORS®
On Thursday, October 8, the Small Business Administration (SBA) and the Treasury Department announced the release of a new, further simplified forgiveness application for PPP borrowers with loans of $50,000 or less. The new application - Form 3508S - is one-and-half pages long, and requires the borrower to certify that the amount they are seeking forgiveness for was spent in accordance with the PPP requirements. Documentation must be submitted to their lender confirming payroll costs, employee numbers, business mortgage interest payments, rent and utility costs for the covered period. The new forgiveness application is simpler for eligible borrowers to use, and will reduce the processing time on the part of the lenders.
In addition, borrowers who use the Form 3508S are exempt from the PPP requirements for maintaining the number of "Full Time Equivalent" employees and not reducing employee wages. Thus, borrowers with loans of $50,000 or less who use the new form are eligible to have their full PPP loan amount forgiven even if economic circumstances kept them from meeting one or both of those requirements of the program.
NAR has been supportive of further streamlined forgiveness rules for small PPP borrowers, and will continue to advocate for future improvements to the program. The SBA is currently processing forgiveness applications provided by the SBA lenders. Borrowers have 10 months from the end of their covered period to submit the Loan Forgiveness Application and accompanying documents to their lender, and the lender then has 60 days to make a determination on the loan forgiveness request.
From the Louisiana Department of Insurance: Insurance Commissioner Tim Temple joined Governor Jeff Landry and Senate Insurance Committee Chairman Kirk Talbot today to announce that Louisiana is investing an additional $20 million in Fortified homes, bringing the total amount invested in state Fortified projects this year to $100 million. Governor Landry announced that $20 million from the U.S. Department of Housing and Urban Development will be transferred to the Louisiana Office of Community Development Restore Resilient Opportunities for Overhead Fortification (Restore ROOF) program to strengthen residential structures and reduce long-term disaster risk. Earlier this year, the Legislature passed a bill that allows $50 million in additional Katrina and Rita bond money from Louisiana Citizens Property Insurance Corporation to be added to the Department of Insurance’s Louisiana Fortify Homes Program (LFHP). Also beginning this year, LFHP is projected to receive approximately $30 million annually from taxes and fees the Louisiana Department of Insurance collects from the insurance industry. “Building stronger homes is a vital part of making homeowners insurance affordable in Louisiana,” said Commissioner Temple. “I appreciate Governor Landry’s leadership and support as we work with legislators like Chairman Talbot to make Louisiana a national leader in the adoption of Fortified roofs.” The Louisiana Department of Insurance (LDI) has finalized its promulgation of Regulation 136—Fortify Homes Premium Discounts. The purpose of Regulation 136 is to implement the statutory provisions set forth in La. R.S. 22:1483, et seq. , which require that all Louisiana property and casualty insurers provide premium discounts or insurance rate reductions for homes constructed or upgraded in accordance with the fortified standards created by the Insurance Institute for Business and Home Safety. View Regulation 136 here .
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