PPP Forgiveness

• Loans of $150,000 or less:
  • You can apply for forgiveness of your First or Second Draw Paycheck Protection Program (PPP) Loan using SBA Form 3508S if the loan amount you received was $150,000 or less for an individual First or Second Draw PPP Loan.
  • If you are not eligible to use this form, you must apply for forgiveness of your PPP loan using SBA Form 3508 or 3508EZ
  • SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. 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.
  • If this loan forgiveness application is being submitted for a Second Draw PPP Loan, you must submit documentation supporting the gross receipts reduction certification on the loan application (if the you did not previously submit such documentation).
• Expansion of Covered Items:
  • Except for borrowers who have already had their loans forgiven, this new legislation includes making the following expenses allowable and forgivable uses for Paycheck Protection Program funds:
    • Covered operations expenditures. Payment for certain business software and cloud computing expenses (that facilitate business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or account or tracking of supplies, inventory, records and expenses).
    • Covered property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
    • Covered supplier costs. Expenditures to a supplier pursuant to a contract, purchase order, or order for goods that are essential to the recipient’s operations at the time at which the expenditure was made and that were made: (i) for nonperishable goods, under a contract in effect prior to taking out the loan; or (ii) for perishable goods, under a contract in effect prior to taking out the loan or at any other time during the forgiveness “covered period” for the loan.
    • Covered worker protection expenditure. Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and Local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.
• Loan Forgiveness “Covered Period” Flexibility:
  • Borrowers will be able to select any length of covered period between 8 and 24 weeks, starting on the day the loan is disbursed and ending on a day selected by the borrower as defined by the SBA.
  • Please Note: Each PPP loan must use a separate loan forgiveness application form.