Since its inception in March, the Paycheck Protection Program (PPP) has brought much confusion for borrowers and lenders alike. With several rounds of updates, participants have been left with as many questions as answers. In the latest round of guidance, participants may finally have some clarity. On June 17, 2020, the U.S. Treasury released a new Form 3508, a revised loan forgiveness application for borrowers. The new form follows the issuance of several pieces of guidance by the Small Business Association (SBA) in the past week since the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law.
Many borrowers have long awaited definitive guidance and this new update may provide some much-needed clarity about PPP loan forgiveness.
The new release not only includes an updated Form 3508, but also Form 3508EZ, which is available for borrowers who meet certain requirements. According to the instructions, borrowers who meet the following qualifications can fill out the 3508EZ:
The forgiveness application has some pretty extensive questions, so you will need to have the following information readily available:
Despite the new form and updates, the PPP loan forgiveness application process can still be confusing. It’s a good idea to contact a professional to guide you through the application process and help you avoid the risk of reducing loan forgiveness.
The professionals at BSB have been monitoring the latest developments and we are here to help. Please contact us with questions about the PPP loan forgiveness process. We will continue to provide updates as soon as they become available.