​SBA Releases New Simplified PPP Form for Smaller Loans

The Small Business Administration released their newest version of the simplified loan forgiveness form for Paycheck Protection Program borrowers. This new version is for borrowers with loans of $150,000 or less. The previous maximum was $50,000.

This version of the 3508-S is simpler than the older one. Borrowers eligible for the 3508-S no longer have to submit any documentation to support the costs they’re requesting for forgiveness. The change eliminates the burden of documentation needed for forgiveness. Now, borrowers sign the form to certify that they fulfilled all of the conditions and requirements needed for loan spending and loan forgiveness.

The new form still instructs borrowers to maintain adequate documentation to support that they’re eligible for forgiveness. But they won’t need to submit anything to their lender.

If you took out a PPP loan, you won’t face any reductions in your forgiveness if you can confirm:

• You didn’t reduce annual salaries or hourly wages by more than 25% during the covered loan period, compared to the most recent full quarter before the covered period.
• You didn’t reduce the number of employees between Jan. 1, 2020, and the end of your loan period.
• You didn’t reduce the average paid hours of employees between Jan. 1, 2020, and the end of your loan period.

If you can’t confirm all three of those conditions, you’ll have to conduct the forgiveness reduction tests associated with FTEs/wage rates from the standard forgiveness application form to confirm. You’ll need to do this to confirm there were no reductions or to identify reductions you’ll need to disclose on the application.

Like other documentation related to this form, you should maintain it. But you don’t need to submit it for forgiveness.

If you have a PPP loan that’s $150,000 or less and haven’t submitted your forgiveness application, please contact us.

This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.