SBA Releases New PPP Loan Forgiveness Form for Loans $50K or Less
Self-certification for PPP loan forgiveness now available
The U.S. Small Business Administration has released SBA Form 3508S, a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
The new form allows borrowers to self-certify they used the money appropriately and receive complete forgiveness.
A new interim final rule determined PPP borrowers of $50,000 or less are exempted from any reductions in forgiveness based on:
- Reductions in full-time-equivalent (FTE) employees; and
- Reductions in employee salary or wages.
SBA Form 3508S cannot be used by borrowers who, together with their affiliates, received loans totaling $2 million or more. There will be no reduction in the forgiveness amount where salaries during the covered period were reduced by more than 25% of the rate employees were paid in the first quarter of 2020. Borrowers still need to provide the SBA with proof that they spent the proceeds on eligible expenses such as payroll, rent, mortgage interest, utility charges, etc. Instructions for Form 3508S were also released by the SBA.
Assistance with your application
KRS professionals are available and happy to assist with loan and forgiveness applications. Visit the KRS Coronavirus Resources Page for additional information. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.