PPP Forgiveness – 3508S Facts
October 16, 2020
Form 3508S is an SBA Form used to apply for the PPP loan forgiveness. Businesses can complete this form if they have received a PPP loan of $50,000 or less. Businesses that are eligible to complete Form 3508S are exempt from reductions in their loan forgiveness amounts. This is possible even if there is a reduction of full-time equivalent (FTE) employees or in salaries. At this time, the SBA does not request that business owners present or attach any of their wage calculations used to determine their loan forgiveness.
Pursuant to the Form 3508S, PPP Loan Forgiveness Application instructions, the business must enter in the same information submitted on their PPP loan application onto Form 3508S. Form 3508S requires the business to also provide all the same details provided when the loan was granted to the business. The form does require the business to provide verification documentation. The instructions specifically state that these verification documents verify the “eligible cash compensation and non-cash benefit payments from the Covered Period” and the “existence of the obligations/services prior to February 15, 2020 and eligible payments.” These documents include:
Payroll:
- Bank account statements or third-party payroll service provider.
- Tax forms for the periods that overlap with the Covered Period.
- Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions.
Nonpayroll:
- Business mortgage interest payments.
- Business rent or lease payments.
- Business utility payments.
In conclusion, if you are business that has received a PPP Loan of $50,000 or less Form 3508S is the form for you! Be sure to submit this form with all required documentation.
Link to the SBA Form 3508S: Form 3508S
For questions related to the PPP forgiveness, please feel free to contact Barbee Tax at (708) 405-2112.
