By Kislay Banka
Many businesses are preparing to apply for Paycheck Protection Program (PPP) loan forgiveness. These applications are due within ten months of the end of your loan’s covered period. The Small Business Administration has created a simplified loan forgiveness application for Paycheck Protection Program loans of less than $150,000 (Form 3508S).
The one-page application includes some basic information, such as the number of employees that the business was able to retain due to the PPP loan. Businesses will also need to share basic data such as the amount of the loan that was spent on payroll costs, the total loan value, and the loan’s covered period.
Additionally, the borrower will need to certify that they have complied with PPP rules, and that they have not made any misstatements in the forgiveness application.
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. This documentation may include but is not limited to bank account statements, tax forms, receipts, canceled checks, or invoices.
Thanks to recent legislation, PPP borrowers no longer need to deduct their Economic Injury Disaster Loan advance from their PPP loan forgiveness amount.
Second-round loans are available until May 31, 2021. For help applying for your second-round loan, or for help obtaining maximum PPP loan forgiveness, please contact your trusted Chugh CPAs, LLP professional.