Last week, a new form for small borrowers and additional guidance on expense submission and deferral on principal and interest were released by the SBA. In the following seven-minute video, RKL Business Consulting Partner Ryan Hurst provides an overview of the form and guidance.
New Form 3508S – In an effort to help simplify the forgiveness process for small borrowers, the SBA released Form 3508S.
- This one-page application is an even easier alternative to the previously released Form 3508EZ and is available for borrowers with loans of $50,000 or less (excluding borrowers that together with their affiliates received loans totaling $2 million or greater).
- The main benefit for eligible borrowers is that the FTE and salary and wage reductions no longer apply. Be aware, however, that all borrowers must submit an application and document that eligible expenses were incurred.
- The SBA also clarified that borrowers may submit eligible expenses that exceed the loan amount. Keep in mind that forgiveness itself is capped at the loan amount.
- Clearing up confusion around the timeframe for the deferral on principal and interest, the SBA also confirms that it is 10 months.
Watch the below video and contact your RKL advisor with specific questions around applicability to your organization’s PPP Loan.