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Yesterday, January 19, 2021, the U.S. Small Business Administration, or the SBA released form 3508S, a simplified PPP loan forgiveness application form. The SBA also announced that the paycheck protection program is now open to all participating lenders. The deadline to apply for PPP loans is March 31, 2021.
Form 3508S is a simplified one-page form that be used to apply for forgiveness of paycheck protection program, or PPP first-draw or second-draw loan of $150,000 or less. Borrowers do not need to file supporting documentation along with form 3508S. However, PPP rules require that borrowers retain supporting employment records for four years, and other supporting records for three years. The SBA may request additional information for the purpose of evaluating a borrower’s eligibility for the PPP loan and for loan forgiveness.
The SBA had previously released forms to request forgiveness of larger loans.
On January 19, 2021, The SBA also announced it had approved 60,000 PPP loans submitted by nearly 3,000 lenders for over $5 billion. The SBA’s PPP loan application portal opened on January 15. Initially, the portal was limited to community-based lenders that specialize in serving underserved communities.
For up-to-date information about the paycheck protection program, see my Guide to Recovery Resources.
This article is obviously general in nature. I am not offering specific advice to you or your company. You should always discuss these matters with your company’s accounting, financial and legal advisors. If I can be of assistance, or you have any questions, criticisms or suggestions, please contact me. I’m always happy to help.