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NEW FORGIVENESS APPLICATION FOR LOANS < $ 50 K


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Paycheck Protection Program OMB Control No. 3245-0407
PPP Loan Forgiveness Application Form 3508S Expiration date: 10/31/2020
SBA Form 3508S (10/20)
A BORROWER MAY USE THIS FORM ONLY IF THE BORROWER RECEIVED A PPP LOAN OF $50,000 OR LESS.
A Borrower that, together with its affiliates, received PPP loans totaling $2 million or greater cannot use this form. Business Legal Name (“Borrower”) DBA or Tradename, if applicable
Business Address Business TIN (EIN, SSN) Business Phone
( ) -
Primary Contact E-mail Address
SBA PPP Loan Number: ________________________ Lender PPP Loan Number: __________________________
PPP Loan Amount: _____________________________ PPP Loan Disbursement Date: ________________________
Employees at Time of Loan Application: ___________ Employees at Time of Forgiveness Application: __________
EIDL Advance Amount: ________________________ EIDL Application Number: __________________________
Forgiveness Amount: ___________________________
By Signing Below, You Make the Following Representations and Certifications on Behalf of the Borrower:
The Authorized Representative of the Borrower certifies to all of the below by initialing next to each one.
_____ The dollar amount for which forgiveness is requested does not exceed the principal amount of the PPP loan and:
 was used to pay costs that are eligible for forgiveness (payroll costs to retain employees; business mortgage interest payments; business rent or lease payments; or business utility payments);
 includes payroll costs equal to at least 60% of the forgiveness amount;
 if a 24-week Covered Period applies, does not exceed 2.5 months’ worth of 2019 compensation for any owner-employee or self-employed individual/general partner, capped at $20,833 per individual; and
 if the Borrower has elected an 8-week Covered Period, does not exceed 8 weeks’ worth of 2019 compensation for any owner-employee or self-employed individual/general partner, capped at $15,385 per individual.
_____ I understand that if the funds were knowingly used for unauthorized purposes, the federal government may pursue recovery of loan amounts and/or civil or criminal fraud charges.
_____ The Borrower has accurately verified the payments for the eligible payroll and nonpayroll costs for which the Borrower is requesting forgiveness, and has accurately calculated the forgiveness amount requested.
_____ I have submitted to the Lender the required documentation verifying payroll costs, the existence of obligations and service (as applicable) prior to February 15, 2020, and eligible business mortgage interest payments, business rent or lease payments, and business utility payments.
_____ The information provided in this application and the information provided in all supporting documents and forms is true and correct in all material respects. I understand that knowingly making a false statement to obtain forgiveness of an SBA-guaranteed loan is punishable under the law, including 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a Federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.
_____ The tax documents I have submitted to the Lender are consistent with those the Borrower has submitted/will submit to the IRS and/or state tax or workforce agency. I also understand, acknowledge, and agree that the Lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of ensuring compliance with PPP requirements and all SBA reviews.
_____ I understand, acknowledge, and agree that SBA may request additional information for the purposes of evaluating the Borrower’s eligibility for the PPP loan and for loan forgiveness, and that the Borrower’s failure to provide information requested by SBA may result in a determination that the Borrower was ineligible for the PPP loan or a denial of the Borrower’s loan forgiveness application.
The Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. SBA may direct a lender to disapprove the Borrower’s loan forgiveness application if SBA determines that the Borrower was ineligible for the PPP loan.
_____________________________________________________ ____________________________
Signature of Authorized Representative of Borrower Date
____________________________________________________ ____________________________
Print Name Title
Paycheck Protection Program
PPP Loan Forgiveness Application Form 3508S
SBA Form 3508S (10/20)
Page 2
PPP Borrower Demographic Information Form (Optional)
Instructions
1. Purpose. Veteran/gender/race/ethnicity data is collected for program reporting purposes only.
2. Description. This form requests information about each of the Borrower’s Principals. Add additional sheets if necessary.
3. Definition of Principal. The term “Principal” means:
 For a self-employed individual, independent contractor, or a sole proprietor, the self-employed individual, independent contractor, or sole proprietor.
 For a partnership, all general partners and all limited partners owning 20% or more of the equity of the Borrower, or any partner that is involved in the management of the Borrower’s business.
 For a corporation, all owners of 20% or more of the Borrower, and each officer and director.
 For a limited liability company, all members owning 20% or more of the Borrower, and each officer and director.
 Any individual hired by the Borrower to manage the day-to-day operations of the Borrower (“key employee”).
 Any trustor (if the Borrower is owned by a trust).
 For a nonprofit organization, the officers and directors of the Borrower.
4. Principal Name. Insert the full name of the Principal.
5. Position. Identify the Principal’s position; for example, self-employed individual; independent contractor; sole proprietor; general partner; owner; officer; director; member; or key employee.
Principal Name Position
Disclosure is voluntary and will have no bearing on the loan forgiveness decision

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There is a poster on another tax talk board who thinks that date should be 10/31/2021 since the PPP end period date could be as late as 12/31/2020 and you have ten months after that to submit you forgiveness application.  He has emailed the SA for clarification.

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It's basically a lot of smoke because while the application itself is about 50 % shorter than the 3 page simplified  application,

the same documentation has to be provided as attachments. 

I sure officials at the Treasury Department and the SBA are very pleased with themselves.

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The SBA can release all the forms they wish.  What matters to the recipients is what the lending institution uses... which like the application, may have more required items than an SBA designed form.  The "experts" still say to wait, as they believe there will be more changes, possibly a plain no form required forgiveness below a certain threshold.

 

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  • 4 weeks later...
  • 2 weeks later...

In many cases, I didn't have a thing to do with my clients receiving this free money, they worked it out with the banker.  However, now comes the time to apply forgiveness application, and the banks all-of-a-sudden want nothing to do with it.  I have a few clients who are banging on me to apply because their hero banker doesn't want anything to do with it.

Are we stuck with the 3508S instead of having the loans automatically forgiven without application?  I thought congress and the SBA were going to go down that road.

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There's a bill out there, but Congresspeople have been campaigning and now it's the holidays! The 3508 and 3508EZ and 3508S all reach the same conclusion for loans of less than $50,000 but you can take fewer steps with the EZ or S. And, the banks have their own portals which ask the questions in their own ways and ask for similar, but not identical, backup documents. If you have the time and want to make some money, you can help clients complete their forgiveness applications.

Some banks are not accepting applications for the smaller loans, in hopes that Congress acts. (I just hope Congress acts to make the expenses paid with forgiven loans deductible!) There's no rush; 10 months after the covered period ends to apply.

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