The U.S. Small Business Administration (SBA) and Treasury on Tuesday released Paycheck Protection Program (PPP) loan cancellation guidelines and forms, including a one-page request for borrowers who have received a PPP loan of $ 150,000 or less.
This form, called the PPP 3508S loan forgiveness request form, can be used by borrowers who have received a PPP loan of $ 150,000 or less. The form requests information on the borrower’s loan amount, disbursement date, employee totals, dates of the period covered, the amount of the loan spent on payroll, and the loan amount for which the remission. is requested. Borrowers are not required to submit supporting documents with the application, but are required to maintain payroll, non-payments, and other documents that might be requested during an SBA loan review or audit.
The SBA and Treasury have issued two other PPP loan forgiveness requests: Form 3508 and Form 3508EZ. Borrowers should submit payroll and non-payroll documents when requesting loan forgiveness along with these forms, which provide lists of required documents. In addition, the SBA and the Treasury have published Form 3508D, which some people should use to disclose their controlling interest in an entity applying for a PPP loan.
An Interim Final Rule (IFR) was also released on Tuesday evening consolidating earlier rules for canceling PPP loans and incorporating changes made by the law on economic aid to small businesses, nonprofits and hard-hit sites. affected, PL 116-260, which kick-started the PPP with $ 284 billion in new financing and created second-draw loans, which allow borrowers who received PPP loans in the first iteration of the program last year to apply for a second loan up to $ 2 million provided they meet more stringent size requirements and can document a year-over-year decline in revenue of at least 25% for a reporting period in 2020.
The IFR and the four forms released Tuesday evening apply to first or second draw PPP loans.
The relaunched PPP began accepting applications on Jan. 11 from community financial institutions that primarily lend to underserved businesses. The application window opened on Jan. 14 for lenders with assets of $ 1 billion or less and for all lenders on Tuesday.
the SBA announced on Tuesday that it has approved around 60,000 PPP loan applications submitted by nearly 3,000 lenders, for more than $ 5 billion since the program reopened until January 17.
AICPA experts will provide a summary of the latest PPP forms and advice during a Town Hall online Thursdays at 3 p.m. ET. The event is free for AICPA members and $ 39.99 for non-members.
Accounting firms can prepare and process PPP applications on the CPA business financing portal, created by AICPA, CPA.com and fintech partner Biz2Credit.
AICPA experts discuss the latest news on PPP and other small business support programs at a bi-weekly virtual town hall. The webcasts, which offer CIP credits, are free to AICPA members. Go to AICPA Town Hall Series web page for more information and to register.
the AICPA Paycheck Protection Program Resource Page houses resources and tools produced by the AICPA to help cope with the economic impact of the coronavirus.
For more information and stories on the coronavirus and how CPAs can handle the challenges of the outbreak, visit JofA‘s coronavirus resource page or subscribe to our email alerts for the latest PPP news.
– Jeff drew ([email protected]) is a JofA senior editor.