New Simplified PPP Application Form Now Available!
See Two Updates Below
Applying for forgiveness under the Paycheck Program (PPP) just got a lot easier!
The new Forgiveness Application Form 3508S greatly simplifies the forgiveness process.
With this new form, providers will not have to show how they spent the money they received to have all of their loan forgiven. This is a major step forward in reducing the paperwork burden of previous forgiveness application forms. The new form is for those who borrowed less than $50,000, which should mean all family child care providers can use it.
The new forgiveness application form is one page. It asks you how much money you received from the loan and how much you want forgiven. Then it asks you to certify that you followed all the rules associated with the loan. That's it! You don't have to submit any records showing how you spent the money. The SBA advises that you do save such records in case the SBA asks for them later (which is highly unlikely).
This new application form replaces two previous forms: Form 3508EZ and Form 3508. Providers should no longer try to fill out either of these forms.
I recommend that providers go ahead and fill out this new forgiveness application form now and submit it to their lender. The SBA has indicated they are making it easier for lenders to process these applications quickly, so there is no reason to wait.
How to fill out Form 3508S
Business Legal Name: Use the name you put on your federal tax return. Your answer should match what you put on your PPP application form.
DBA or Tradename: If you have one, list it. You are not required to have one. Your answer should match what you put on your PPP application form.
Business TIN: Enter the same information you put on your application form
SBA PPP Loan Number: This should appear on the paperwork you got when your loan was accepted. If you can’t find it, ask your lender.
Lender PPP Loan Number: This should come from your lender (bank or online company).
PPP Loan Amount: Enter the amount you received.
PPP Loan Disbursement Date: This is the date the money was deposited in your bank account.
Employees at Time of Loan Application: Enter 1 for yourself and 1 for each employee you had when you applied for the loan.
Employees at Time of Forgiveness Application: Enter 1 for yourself and 1 for each employee you had when you applied for forgiveness.
EIDL Advance Amount: If you received the $1,000 per employee under the Economic Injury Disaster Loan (EIDL) “advance,” enter the amount here. If you got the EIDL “loan,” do not enter the loan amount here.
EIDL Application Number: If you got the EIDL loan, enter the number you received when you received it.
Forgiveness Amount: Enter the same amount as your PPP Loan Amount from above. Don't put a number here that is higher than the amount you received!
The rest of the form asks you to certify that you followed all the rules for this loan. Put your initial next to each paragraph. Note: The first paragraph asks you to certify that you spent at least 60% of the forgiveness amount on payroll. This includes payroll for yourself. Since you can always say that you spent 60% or more on payroll for yourself by simply writing a check to yourself, don't hesitate to initial this paragraph.
Sign at the bottom of the page, date it and submit it to your lender right away to avoid delays.
There is a page two to this form which is optional and asks you for some demographic information about yourself.
Here are the instructions to this form.
Update #1: Summary of SBA loan programs
As of this writing, you can no longer apply for the PPP program. The SBA also has an Economic Injury Disaster Loan (EIDL) "advance" program that offered a $1,000 forgivable loan. However, that program is also no longer accepting an new applications. The EIDL "loan" program is still accepting applications for a 30 year loan at 3.75% interest.
Update #2: Payroll paperwork
If you spent some of the PPP money on payroll for employees (not yourself), when applying for forgiveness, you will need to send in documentation showing that you paid your employees. See page 3 of the instructions to Form 3028S.
Tom Copeland - www.tomcopelandblog.com
Image credit: www.sba.gov
