PPP Forgiveness Streamlined
After extensive advocacy by bankers and trade associations, the SBA has released a streamlined loan forgiveness application for PPP loans totaling $50,000 or less.
Form 3508S, the two-page application, includes certifications from the borrower but does not require calculations to be submitted with the application.
A borrower that uses SBA Form 3508S 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.
Documentation
Applicants still must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are further required to retain the documentation supporting their certifications for six years, but do not need to submit it.
Self-employed borrowers should submit a copy of their final 2019 Schedule C in lieu of documentation verifying forgivable expenses.
Further details of required documentation to be submitted and retained can be found in the 3508S instructions.
Impact of EIDL Advance
If a borrower received an EIDL advance, SBA is required to reduce the borrower’s loan forgiveness amount by the amount of the EIDL advance. SBA will deduct the amount of the EIDL advance from the forgiveness amount remitted by SBA to the lender.
PPP Forgiveness Forms
PPP Forgiveness Submission
Please submit your Form 3508S along with the documentation of expenses by uploading the documents here:
If you have any questions please don’t hesitate to reply to this message, or call one of our business bankers at 715-359-4231.
