If your PPP loan amount is $150,000 or less, you qualify to file for forgiveness using Form 3508S which is a one-page simplified version of Form 3508.
To apply for forgiveness on Form 3508S, borrowers need to:
- Input loan information and business information, including the number of combined full-time and part-time employees at both the time of the PPP loan application and the loan forgiveness application.
- Select the length of the Covered Period. The Covered Period is the time during which PPP loan funds were spent on eligible expenses so the loan, or a portion thereof, may be forgiven. Borrowers have the option to choose a Covered Period between 8 to 24 weeks. The length of the Covered Period chosen should be at least as long as the amount of time it took to spend PPP loan funds on eligible expenses. If uncertain, the safest approach would be to select a Covered Period of 24 weeks.
- Indicate the amount of PPP funds spent on payroll costs and the total requested forgiveness amount. The amount spent on payroll costs must be at least 60% of the requested forgiveness amount.
Borrowers applying for forgiveness on Form 3508S are not required to submit documentation of eligible expenditures along with their forgiveness application. However, borrowers should retain such documentation in case requested by the SBA as part of a formal review.
Remember, to avoid making payments on your PPP loan you must apply for forgiveness before your deferral period end date. The deferral period end date is 10 months after the maximum Covered Period of 24 weeks.
The ultimate deadline to apply for PPP loan forgiveness is the loan maturity date.
The PPP forgiveness timeline.
NEWITY members can begin their forgiveness application today by logging into the Smart Portal.
