Thursday, December 3, 2020

SBA streamlines PPP loan forgiveness for $50,000 or less

The Small Business Administration tonight released a streamlined loan forgiveness application for Paycheck Protection Program loans of $50,000 or less.

The forgiveness application, Form 3508S, includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain the documentation supporting their certifications for six years, but do not need to submit it.

Once the application is received, the lenders must confirm th eyreceived the borrower’s certifications and documentation.

The SBA also provided guidance on lender responsibilities when borrowers apply for forgiveness of costs-regardless of which form they use-exceeding the PPP loan amount.

Below are links to download Form 3508S from the SBA, as well as SBA-provided instructions.

• Download Form 3508S.
• Download the instructions for Form 3508S.