Headshot of Rick Krueger
Rick Krueger

Long-term care operators who received Paycheck Protection Program loans of $50,000 or less have a new, more simplified option when it comes to applying for loan forgiveness. 

Earlier this month, the Small Business Administration and U.S. Treasury Department released the new Form 3508S, a one-page, simplified application for loan forgiveness for such loans. Qualified owners of multiple businesses can still use the SBA Form 3508S for each business under $50,000, so long as together with its affiliates, total loan amounts are less than $2 million.

“This new form really is a big win for eligible borrowers,” noted Rick Krueger, principal at CliftonLarsonAllen Wealth Advisors, LLC, during a livestream event for the long-term care industry Thursday.

Further, a new interim final rule from the agencies exempts PPP borrowers of $50,000 or less from any reductions in forgiveness based on reductions in full-time-equivalent employees; and reductions in employee salary or wages.

Krueger also shared news of several PPP loan forgiveness applications that have received approval within the long-term care industry.

“While we don’t have official numbers on this from the SBA, we have heard anecdotally of several clients who have received approvals,” he said. Late last month, the SBA had yet to accept or reject any of the 96,000 received forgiveness applications. While Krueger noted most of the approval applications so far have been on the smaller, easier end of the loan spectrum, it’s a promising sign, he noted. Further, in terms of when senior living and care operators should apply for PPP forgiveness, Krueger said the timing really depends on a borrower’s future plans.

“Those who are dealing with impending debt issuances or have M&A activity coming up may feel better getting this loan off the books sooner rather than later,” he said.