The US Small Business Administration (SBA) and the Treasury on Tuesday released updated guidelines and forms for forgiveness of PPP loans, including a one-page statement for borrowers with a PPP loan of $ 150,000 or less.
This form, called PPP Loan Forgiveness Application Form 3508S, can be used by borrowers who have received a PPP loan for an amount not exceeding USD 150,000. The form asks for information about the borrower’s loan amount, due date, total number of employees, coverage terms, loan amount spent on payroll, and loan amount for which forgiveness is sought. Borrowers are not required to provide any supporting documentation with the application, but are required to maintain payroll, other non-payroll documents, and other documents that may be requested during an SBA loan review or audit.
The SBA and the Treasury have released two other statements of forgiveness for PPP loans: Form 3508 as well as Form 3508EZ… When applying for a loan forgiveness, borrowers must provide payroll documents and other documents other than those that contain lists of required documents. In addition, the SBA and the Treasury have issued Form 3508Dthat certain individuals must use to disclose the controlling interest in an entity applying for PPP loans.
Also on Tuesday evening, an Interim Final Rule (IFR) was published consolidating the previous PPP loan forgiveness rules and incorporating changes introduced by the Small Businesses, Nonprofits and Distressed Entities Economic Assistance Act. PL 116-260who revived the PPP with $ 284 billion in new funding and created second-line loans that allow borrowers who received PPP loans during the first iteration of the program last year to obtain a second loan of up to $ 2 million, provided they meet stringent sizing requirements and can document annual revenue decline of at least 25% in one reporting period in 2020.
The IFR and all four forms, issued Tuesday night, apply to PPP loans in the first or second draw.
The renewed PPP began accepting applications on 11 January from community financial institutions, which lend primarily to underserved enterprises. The application window opened on January 14 for lenders with assets of $ 1 billion or less and for all lenders on Tuesday.
IN SBA announced on Tuesday that nearly 60,000 PPP loan applications have been approved by nearly 3,000 lenders, valued at over $ 5 billion since the program reopened until January 17th.
AICPA experts will provide a summary of the latest PPP forms and recommendations during online Town Hall Thursday at 3:00 pm ET. The event is free for AICPA members and $ 39.99 for non-members.
Accounting firms can prepare and process PPP applications for CPA Business Finance Portalcreated by AICPA, CPA.com and fintech partner Biz2Credit.
AICPA experts discuss the latest news on PPP and other small business assistance programs during a virtual town hall held every two weeks. Webcasts that provide CPE credit are free for AICPA members. Go to AICPA Town Hall Series See the web page for more information and registration.
IN AICPA Payroll Protection Program Resources Page contains the resources and tools developed by AICPA to address the economic impact of the coronavirus.
For more news and messages on the coronavirus and how CPAs can tackle the outbreak-related issues, visit JofAfrom coronavirus resource page or subscribe to our email notifications for the latest PPP news.
– Jeff Drew (Jeff.Drew@aicpa-cima.com) this is JofA senior editor.