SBA Form 3508S – PPP Loan Forgiveness Form 3508S – According to the Small Business Administration, you must utilize the PPP Forgiveness Application SBA Form 3508S to ask for forgiveness if you took out a Paycheck Protection Program loan for less than $150,000. Original loan amounts were $50,000 or less, but the Economic Aid Act of 2009 (often known as the “stimulus bill”) increased the maximum loan amount to $150,000, effective January 1, 2010. Make sure you’re looking at the most latest version, which was updated on January 19, 2021, before continuing.
Forgiveness is not automatic as a result of this application. Although it looks to be straightforward, it still necessitates the calculation of your forgiveness amount, which may need the use of additional paperwork. In the past, the SBA has urged all borrowers to submit a request for forgiveness with the lender that provided them with their PPP loan or with the loan servicer, if one exists. To ask for forgiveness, the lender may complete a web-based application form.
As previously mentioned, the Economic Aid Act established a new one-page Paycheck Protection Program (PPP) debt forgiveness application for borrowers with PPP loans totalling less than $150,000 that may be completed in a single sitting. SBA issued a new version of this form on January 19, 2021. There have been several revisions to SBA Form 3508S which are discussed on this page. A new version of the PPP loan forgiveness application Forms the Small Business Administration has produced 3508 and 3508EZ. It is detailed in this section how these modifications will be implemented.
Introducing Form 3508S, the “New” version of the form
An existing SBA Form 3508S (formerly accessible to borrowers with loans of $50,000 or less) and instructions (now integrated into a single document) have been amended to function as the form needed under the Economic Aid Act, rather than issuing an entirely new form as is required by law.
Borrowers must still give the following information, just as they did with the old SBA Form 3508S:
- In addition to the legal name and dba name, if applicable,
- A company TIN (EIC, SSN) is a tax identification number.
- Contact information.
- Loan figures from the Small Business Administration and lenders for PPP loans
- The amount of the PPP loan
- Financing for the PPP loan;
- In terms of workers at the time of loan application and repayment request, as well as,
- PPP debt forgiveness requests are broken down into three categories:
The following are the most significant modifications made to SBA Form 3508S.
- The form may now be used by borrowers who have PPP loans of $150,000 (up from $50,000) or less (instead of $50,000).
- It is now necessary to know what industry the Borrower belongs to.
- It is now possible to identify whether an application for debt forgiveness is for a First Draw or Second Draw PPP loan with the addition of a new “check box.”
- The borrower must specify the period that is covered by its Covered Period (between 8 and 24 weeks).
- A new check box is available to indicate if the Borrower and its affiliates received First Draw or Second Draw loans for $2 million or above (previously, such borrowers could not use Form 3508S).
- The EIDL Advance Amount and EIDL Application Number fields on the form have been removed.
- The PPP loan covers payroll expenses, which must be documented by the Borrower (they must be at least 60% of the requested forgiveness amount).
- Only two borrower certificates must be initialled, as opposed to seven in the previous scenario.