SBA has published the new simplified for PPP loans less than $150,000.
Note that not all banks have started accepting simplified PPP forgiveness application yet. Please follow instructions from your banks on how to apply for the forgiveness.
Who’s Eligible to Use the Simplified Application? Borrowers who received less than $150,000 in PPP loan can use the Form 3508S.
What Information is Needed? The simplified application requires basic information about the business and PPP loan. Below are information needed to complete forgiveness application. For detailed list of information needed and instructions on filling out the application, refer to .
Business information including Name, DBA, and contact information. This information can be found on the original PPP loan application. PPP loan information including PPP loan number and loan amount. This information can be obtained from the bank you received PPP loan from. The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the Borrower that is between 8 weeks and 24 weeks after the date of loan disbursement. For example, if the Borrower received their PPP loan proceeds on Monday, April 20, 2020, the first day of the Covered Period is Monday, April 20, 2020, and the final day of the Covered Period is any date selected by the Borrower between Sunday, June 14, 2020, and Sunday, October 4, 2020. Amount of PPP loan spent on payroll costs. Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the Covered Period. Number of employees at time of loan application and number of employees at the time of forgiveness. Request Loan Forgiveness Amount. This is the total amount of your PPP loan that is eligible for loan forgiveness. This amount is the “Amount of Loan Spent on Payroll Costs” plus any amount spent on eligible nonpayroll costs, up to the amount of the PPP loan. Amount spend on payroll should be at least 60% of loan forgiveness amount. Documentation Requirement SBA Form 3508S does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review or audit processes. Borrowers Responsibilities The Borrower must comply with all requirements in the Paycheck Protection Program Rules (Sections 7(a)(36), 7(a)(37), and 7A of the Small Business Act, the PPP interim final rules, and SBA guidance issued through the date of this application), and must attest to its compliance on the Loan Forgiveness Application. These requirements can be found on SBA.gov website. Additional Resources
Online Bookkeeping and Tax Services for Freelancers | Sugar Land CPA
No Comments