The US Small Business Administration has launched a one-page form to simplify the process of applying for the Wage Protection Loan Forgiveness loan, along with newly revised and updated forms to meet the requirements of the latest incentive legislation.
The COVID-19 aid package adopted by Congress last month revived the PPP with $ 284 billion in funding for small businesses applying for forgivable loans to help them cope with the economic consequences of the coronavirus pandemic. It included a requirement for the SBA to issue simplified forms within 24 days of signing the legislation to simplify the forgiveness process, along with conditions to encourage more borrowing from EU banks, especially for owned businesses. of minorities who had trouble getting loans last year.
“The Small Business Administration has met the requirement to issue a one-page PPP loan forgiveness form within 24 days of the adoption of the Consolidated Credit Act, 2021,” wrote Ed Zollars, partner at Thomas & Zollars, CPA, on Current blog on federal tax development for Kaplan Financial Education. “The Agency has also published additional updated forms.”
The revised forms include:
- Form 3508S: A one-page forgiveness form for PPP loans up to $ 150,000 along with instructions.
- Form 3508-EZ: A simpler forgiveness application form for debtors who meet specific security conditions.
- Form 3508: The full PPP loan forgiveness application for those who do not qualify for use of any of the above forms.
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The SBA also issued Form 3508D if the debtors could disclose controlling interests in business by other companies and if government officials are involved in the activity.
The apology for the one-page 3508S form will be especially helpful for small businesses that have borrowed less than $ 150,000 from PPPs.
“Form 3508S reduces the amount of information and documentation provided to the lender when the borrower seeks forgiveness of the loan,” wrote Justin Elanjian, partner in charge of PPP and ERC services at Aprio, a top 100 firm, in a article on the company’s website. ‘However, the borrower must accurately calculate the amount required to forgive the loan and verify the payments for the eligible costs included therein. Furthermore, although “it is not necessary for the lender to present the documentation to the loan forgiveness application”, the borrower must keep all the worksheets / payroll documentation in his files for four years and all other documents for three years after the date of forgiveness of the loan the request is sent to the creditor and allows authorized representatives of the SBA – including representatives of the Office of the Inspector General – to access such files upon request. ”