SBA Loan PPP Forgiveness

Good News (Finally): SBA Loan PPP Forgiveness

 The Small Business Administration (SBA) and U.S. Treasury Department released loan forgiveness guidance and forms incorporating changes made by the recently enacted COVID relief legislation, including the much anticipated one-page application for borrowers that received a Paycheck Protection Program (PPP) loan of $150,000 or less.   The form is available for download below.

 Details of the PPP Loan Forgiveness Program:

• The Borrower can apply for forgiveness of your First or Second Draw Paycheck Protection Program (PPP) Loan using the SBA Form 3508S only if the loan amount you received from your Lender was $150,000 or less for an individual First or Second Draw PPP Loan.

• Each PPP loan must use a separate loan forgiveness application form. You cannot use one form to apply for forgiveness of both a First and Second Draw PPP loan.

•  The SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers.

•  The SBA Form 3508S does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review or audit processes. Borrowers may also complete this application electronically through their Lender.