SBA Paycheck Protection Program for Businesses Impacted by COVID-19
Simplified Form 3508S for Loans Less Than $50,000
Bank Independent is pleased to provide an SBA PPP update specifically for borrowers with loans less than $50,000. The SBA has released Form 3508S which requires fewer calculations and less documentation for eligible borrowers. Here's what we know about Form 3508S:
- Borrowers that use Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages.
- The borrower is not required to show the calculations used to determine their loan forgiveness amount.
- However, the SBA may request information and documents to review those calculations as part of its loan review process.
- Borrowers that use Form 3508S are required to submit backup documentation to demonstrate how funds were used.
- Borrowers must submit a complete loan forgiveness application within 10 months after the last day of the borrower's loan forgiveness covered period. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.
- There are no adverse consequences for those waiting to apply.
- A new, unique SBA PPP Loan Forgiveness Application link will be sent to the email used to apply for the original loan directing qualified users to the new Form 3508S.
- The SBA PPP Loan Forgiveness portal will be capable of accepting Form 3508S on November 13, 2020.
Answers to Your SBA PPP Forgiveness questions
Bank Independent has gathered resources on document collection, form submissions, and timelines in order to help you complete your application quickly and accurately.
On this page, you will find checklists, video tutorials, and more walking you through the calculations, supporting documentation, and the application process.
Thank you for trusting Bank Independent to serve your business banking needs.
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Bank Independent is pleased to pass along an update from the Small Business Administration announcing a modified SBA Paycheck Protection Program (SBA PPP) Loan Forgiveness Application Form 3508EZ and a three-page Instruction guide to the “EZ” SBA PPP loan forgiveness application. The SBA modified the new application form 3508 to reflect the recent changes made by Congress in the PPP Flexibility Act.
The new application requires less documentation and fewer calculations than previously expected. The “EZ” SBA PPP loan forgiveness application is designed for borrowers who meet any of the following three criteria listed below:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (except laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The SBA is now accepting PPP Loan Forgiveness applications. Borrowers have until December 31, 2020 to submit a complete loan forgiveness application and there are no adverse consequences for those waiting to apply. The SBA has confirmed a simplified application form 3508S for loans under $50,000. We anticipate the SBA will begin accepting this form through the forgiveness submission portal in the next few weeks. We will keep our borrowers notified if any new legislation is passed. We have emailed a unique SBA PPP Loan Forgiveness Applications link to the email address used in the borrower’s original application. If you have not yet received your link, reach out to your sales officer. We will be happy to help you begin the process. You can refer to the following links to familiarize yourself with the existing applications and instructions:
UPDATED SBA PPP Forgiveness Guidelines Town Hall
We hosted a follow-up Town Hall to address new changes to the SBA PPP Loan Forgiveness Process on June 25. You can view the webinar in its entirety below. And, thank you for trusting Bank Independent with your business banking needs.
SBA PPP Town Hall
Bank Independent hosted a PPP Forgiveness Town Hall on May 21 to share with our customers and community what to expect with the forgiveness process and application. While the newly passed PPP Flexibility law does effect some of the details discussed, we hope this information is generally helpful.
If you have questions about your specific situation, we encourage you to consult with your accountant or tax adviser.
Thank you for trusting Bank Independent with your business needs.