SBA Releases Streamlined Forgiveness Application for PPP Loans Less Than $50,000

Good news for those who borrowed less than $50,000 through the Paycheck Protection Program and are planning to seek loan forgiveness. Earlier this week, the SBA released Form 3508S, which requires fewer calculations and less documentation for eligible borrowers.

The streamlined application does not require borrowers 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.

Qualified borrowers who use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on:

• reductions in full-time equivalent (FTE) employees, or
• reductions in salaries or wages.

Keep in mind to only include payroll costs for employees whose principal place of residence is in the United States. For details defining qualified payroll costs, refer to the Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811), as amended by the Revisions to First Interim Final Rule, posted on June 11, 2020 (85 FR 36308).

If you are not eligible to use Form 3508S, you must apply for forgiveness of your PPP loan using SBA Form 3508 or 3508EZ (or your lender’s equivalent form).

To retrieve Form 3508S, please click here.

To retrieve instructions for Form 3508S, please click here.

If you are in the process of completing the PPP forgiveness application, need assistance completing the application, or have questions pertaining to any of the programs you are participating in due to the COVID-19 pandemic, please know our team is available to assist.

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