On January 19, 2021, the SBA and Treasury issued the much anticipated new application for loan forgiveness for loans under $150,000, along with several other new documents related to the Paycheck Protection Program.
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Form 3508S was modified for loans up to $150,000 (originally $50,000) to apply for forgiveness. The form requires information about the borrower’s loan amount, disbursement date, employee totals, covered period dates, amount of the loan spent on payroll, and total loan amount. Borrowers do not have to submit any supporting documentation with the application but are required to maintain documentation for payroll and nonpayroll costs, as well as other support that could be requested during an SBA loan review or audit.
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Two other loan forgiveness applications were also modified and released, which now include the updated language and additional forgivable costs included in recent PPP updates: Form 3508 and Form 3508EZ.
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Form 3508D is a new form that requires certain government officials and spouses to disclose a controlling interest in an entity when applying for a PPP loan.
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An Interim Final Rule was released consolidating prior PPP loan forgiveness rules with changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act.
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An 18-page document helps borrowers calculate revenue reduction and maximum loan amounts for Second Draw PPP loans, in addition to providing guidance about the documentation that borrowers must provide.
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A 12-page document covers calculations and required documentation for First Draw PPP loans by business type.
If we can assist you with completing a forgiveness application, in explaining the new programs' provisions, analyzing the potential benefits or assisting you with gathering the needed information to apply, please call any Sponsel CPA Group Team member or our colleagues listed below.
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
