This information is accurate as of February 25th, 2021.

The Small Business Administration (SBA) has issued updated forms regarding Paycheck Protection Program (PPP) loan forgiveness. Some items to note:

Borrowers with PPP Loans of $150,000 or less

The SBA released a one-page application, the PPP Loan Forgiveness Application Form 3508S, that can be used by borrowers that received a PPP loan of $150,000 or less. The previous form was for PPP loans $50,000 or less.

Form 3508S is a shortened version of form 3508 as it is a one page form. Calculations for loan forgiveness amounts and supporting documentations are not required to be submitted with the application, but should be retained by the borrower since the SBA has authorization to audit any forgiveness application and will be required then to submit these calculations. Loans greater than $50,000 (or less than $50,000 but affiliate loans total $2M or more) are still subject to FTE reductions and wage reductions.

A borrower who is eligible to use form 3508S for loans $150,000 or less but have already applied for forgiveness with form 3508EZ or 3508 may re-apply for forgiveness using form 3508S unless the SBA has notified the lender of a final decision on their loan. If a lender does receive a form 3508S from a borrower before the SBA has submitted their decision, they must notify the SBA and request the original forgiveness application be withdrawn.

Borrowers with PPP Loans of $2M or more

The SBA issued new forms for PPP borrowers who received funds totaling $2M or more (for all companies/organizations affiliated) – Form 3509 for for-profit borrowers and Form 3510 Loan Application (non-profit borrowers).

Lenders will issue the above questionnaires to borrowers, who together with their affiliates, borrowed loans of $2 million or more. Borrowers must respond to and return the questionnaires to their lenders within 10 days of receipt.

The forms are designed to assist the SBA with gathering information used to evaluate the certification made by the borrower with their loan application that economic uncertainty made their loan necessary.

Instructions provide that the questionnaires should not be viewed as a challenge by the SBA to the borrower’s certification, and that the responses will only be used to assist the SBA in determining whether additional information is needed. The SBA will consider the totality of the borrower’s facts and circumstances in assessing the validity of their certification.

Failure to complete and timely return the questionnaire may result in the SBA’s determination that the borrower was ineligible for the loan, the loan amount or any forgiveness claimed. Once the form has been completed and submitted to the SBA, the SBA might request additional information to complete their review. At this point, the borrower can provide a written response explaining their necessity of the funds at the time of request.

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