Paycheck Protection Program Application - BSB

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.

Here are a few questions to keep in mind as you start the PPP loan forgiveness application process.

  • Which form do I need?

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 borrower is self-employed, an independent contractor, or sole proprietor who had no employees at the time of the PPP loan application.
    • The borrower did not reduce salaries or hourly wages of any employee by more than 25 percent during the covered period compared to the period between January 1 and March 31, 2020; AND the borrower did not reduce the number of employees or average paid hours between January 1, 2020 and the end of the covered period.
    • The borrower did not reduce annual salaries or hourly wages of any employee by more than 25 percent during the covered period compared to the period between January 1 and March 31, 2020; AND the borrower was unable to operate at the normal level of business activity as prior to February 15, 2020 due to compliance with guidance for safety due to COVID-19.
  • What information should I have on hand?

The forgiveness application has some pretty extensive questions, so you will need to have the following information readily available:

  • Name, address, EIN
    • SBA PPP loan number, lender PPP loan number, PPP loan amount 
    • Disbursement date
    • Number of employees at time of forgiveness application
    • EIDL advance amount and EIDL application number
    • Payroll schedule
    • Covered period or alternative payroll covered period, if applicable – The PPPFA extended the covered period from the original 8-weeks to 24-weeks, but any borrower with a loan originating before June 5 can use the 8-week period  if preferred.
    • Schedule A and the accompanying Schedule A worksheet — these will be used to fill out the loan forgiveness application.
  • Where can I find the instructions and forms?

Full instructions and  Form 3508 and  3508EZ are available at treasury.gov.

  • What should I do next?

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.