The U.S. Small Business Administration has released a one-page form intended to simplify the process of applying for forgiveness of Paycheck Protection Program loans, along with recently revised and updated forms to meet the requirements of the latest incentive legislation .
The COVID-19 aid package that Congress passed last month has revived the PPP with $ 284 billion in funding for small businesses seeking forgivable loans to help them cope with the economic fallout from the coronavirus pandemic. It included a requirement for the SBA to issue streamlined forms within 24 days of the legislation being signed into law to simplify the process of applying for forgiveness, along with terms intended to allow for more loans from community banks Encourage, especially for minority businesses that had problems getting loans last year.
“The Small Business Administration met the requirement to issue the one-page PPP loan waiver form within 24 days of the Consolidated Appropriations Act 2021 effective date,” wrote Ed Zollars, a partner at Thomas & Zollars, CPA, on its own Current blog about federal tax developments for Kaplan Financial Education. “The agency has also published additional updated forms.”
The revised forms include:
- Form 3508S: A one-page forgiveness form for PPP loans up to $ 150,000, along with instructions.
- Form 3508-EZ: A simpler forgiveness application form for borrowers who meet specific Safe Harbor conditions.
- Form 3508: The full PPP Loan forgiveness application for those who are not eligible to use any of the other forms above.
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The SBA has also issued Form 3508D where borrowers might disclose controlling interests in the business of other companies and whether government officials are involved in the business.
The Form 3508S one-page forgiveness request is especially useful for small businesses that have borrowed less than $ 150,000 from the PPP.
“Form 3508S reduces the amount of information and documentation provided to the lender at the time the borrower requests forgiveness of the loan,” wrote Justin Elanjian, responsible partner for PPP and ERC services at Aprio, a Top 100 company, in a article on the company’s website. However, the borrower must accurately calculate the amount requested to forgive the loan and verify the payments for the eligible costs included therein. Additionally, while “ no documentation is required to be filed with the lender in the loan waiver application, ” the borrower must keep all employment records / payroll on their files for four years and all other documentation for three years from the date on which the loan has been forgiven. application is filed with the lender, and allows authorized representatives of the SBA – including representatives of its Office of Inspector General – to access such files upon request. “