SBA Clarifies Form Expiration and Creates Simpler Form for Smaller Loans
New Form for PPP Loans of $50K or Less
A new Paycheck Protection Program application is now available for loans $50K or less, and is known as Form 3508S. Borrowers who have less than $50K in PPP loans are exempt from any reductions in the borrower’s loan forgiveness amount based on reductions in full-time equivalent employees or reductions in employee salary or wages that would otherwise apply.
October 31 is Not Application Deadline
Confusion swirled around PPP loan forgiveness deadlines as application forms displayed “expiration” dates of Oct. 31, 2020 in the top right corner. The Small Business Administration clarified in its Frequently Asked Questions last week on Oct. 8 that borrowers can submit a loan forgiveness application any time before the loan’s maturation and depending on the borrower’s agreement that time frame is either two or five years. The “expiration date” on application forms simply complies with the “Paperwork Reduction Act,” and exists merely as a temporary expiration date for the approved use of the forms. The SBA will be updating forms to include revised dates once they have a new expiration date approved.
If you still have questions on how to calculate your PPP loan forgiveness, please contact us. We can help set you on a path forward.