Subject:                                     FW: HSC Coronavirus Communication Edition #28





Edition #28

October 16, 2020



HSC COVID-19 Fast Response Team

We are here to help! 


In these uncertain times with multimedia channels reporting conflicting and sometimes incorrect information, our firm is working to add clarity to this situation by providing new and verified information as it becomes available to us. We have also set up a Coronavirus Resource Center on our website for ongoing information. 


In addition, we have created the HSC COVID-19 Fast Response Team to serve our clients in addressing the difficult decisions they are being faced with on a daily basis. This dedicated multi-disciplinary team consists of our tax, payroll, HR, capital markets and accounting professionals. 


If you have questions or would like to speak with this team, please contact your HSC team member or Kyle Wininger,




PPP Forgiveness Simplified for Loans of $50,000 or Less


On October 8, 2020, the SBA announced another Interim Final Rule (“IFR”) – Additional Revisions to Loan Forgiveness and Loan Review Procedures Interim Final Rules. This IFR is an exercise of rulemaking authority by SBA jointly with Treasury regarding treatment of the forgiveness rules as they apply to the 3.57 million PPP loans under $50,0000 which represents the majority of the number of PPP loans outstanding. It has been discussed over the past two months in the media that the Treasury was contemplating that smaller loans might eventually get automatic or simplified forgiveness. The original threshold mentioned was $150,000 in loan size or less, but the SBA and the Treasury have finally approved these new application processes for all loans under $50,000 (so long as there are not affiliated Companies whose combined loans exceed $2 million). 


Most borrowers with smaller loans have been waiting for Congress to pass additional legislation regarding PPP simplified forgiveness before submitting their application for forgiveness. While there could still be further legislation to come, this IFR provides the clarity borrowers with smaller loans have been waiting on in order to move forward with their forgiveness applications.


A borrower that has a loan of $50,000 or less that qualifies and uses the new SBA Form 3508S (or lender’s equivalent form) is exempt from any reductions in the borrower’s loan forgiveness amount based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages that would otherwise apply. In addition, the level of support required to be submitted on these loans is limited to only the payroll and non-payroll documentation necessary to calculate the eligible expenses during the chosen covered period. The elimination of the FTE reduction calculation and the Wage reduction calculation greatly reduces the administrative burden for the borrowers, lenders and the SBA for these loans under $50,000.


Below are several helpful links:


PPP Loan Forgiveness Guidelines Video

Full October 8 article from the Journal of Accountancy 

Interim Final Rule 

New SBA Form 3508S 

New Instructions for SBA Form 3508S 


If you have any questions please contact Scott Touro, MBA at


Harding, Shymanski & Company, P.S.C. is a public accounting firm with offices in Evansville, Indiana, and Louisville, Kentucky. We are one of the largest accounting firms in Southern Indiana and Kentucky, providing experienced professionals who look beyond the numbers to the heart of complex issues.  Our clients range in size from small proprietorships to billion-dollar corporations, from closely-held and family-owned businesses to publicly traded firms, and span nearly every industry. They all have one thing in common: they count on our expertise to capitalize on their opportunities and make the best of their challenges.


Evansville Office

21 SE Third Street

Suite 500

Evansville, IN  47708

(812) 464-9161

Louisville Office

545 S Third Street

Suite 102

Louisville, KY  40202

(502) 584-4142



As a reminder, you are receiving this email because you are a valued client of Harding, Shymanski & Company, P.S.C.  For more information on our company, please visit our website.



Harding, Shymanski & Company, P.S.C

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