Gulfshore Insurance > Gulfshore Blog > Business Continuity > PPP Loan Forgiveness Update – Still No Automatic Forgiveness

Commercial Lines PPP Loan Forgiveness UpdateLast month, Congress was considering a law that would automatically forgive Payment Protection Program (PPP) loans under $150,000. If this law is approved, small businesses who received a PPP loan of less than $150,000 would have their loan automatically forgiven without having to file the forgiveness application with their bank.

As of now, Congress still has not approved automatic forgiveness of PPP loans for small businesses.

Because the forgiveness application is lengthy, many small businesses are waiting to file their applications in the hopes that Congress will approve automatic forgiveness. And many banks are encouraging PPP recipients to wait since interest is not incurring and there is not a tight deadline at this point to apply for forgiveness. Businesses have 24 weeks from the date of their loan to apply for forgiveness.

To apply for loan forgiveness, you will need to file an application (Form 3508) with the bank that issued the loan to you. If your business did not reduce the number of its employees or their wages, you can use the more streamlined Form 3508EZ.

You can download the forgiveness application [Form 3508] by clicking here, and the instructions by clicking here.

The simplified forgiveness application [Form 3508EZ] can be downloaded by clicking here and the instructions by clicking here.

We will continue to share information as it becomes available and keep you informed.

Ryan Schmidt is a Client Advisor and Partner with Gulfshore Insurance. Ryan specializes in working with commercial clients. Comments and questions are welcome at rschmidt@gulfshoreinsurance.com.

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.