PPP Loan Forgiveness: New Guidance

Last week, the U.S. Treasury released both a new shorter PPP Loan Forgiveness form (3508, rev. 6/16/20) and a short form for eligible businesses (3508EZ). The short form is for sole-proprietors/self-employed or those who meet some specific criteria related to reduced wages and reductions of employee hours. Forms and all the details, FAQs and more are on the SBA PPP Website. The U.S. Chamber of Commerce has an updated plain-language summary of loan forgiveness requirements and milestones for businesses.

As you prepare to apply for loan forgiveness, gather and document the following information:

• Business legal name (and DBA or tradename if applicable).

• Business Employer Identification Number (EIN) or your Social Security Number (SSN) if sole proprietor.

• PPP loan number, loan amount, and loan disbursement date.

• Number of employees at the time of the loan application and the current number of employees (at time of forgiveness application).

• If applicable, your EIDL advance amount and application number.

• Payroll costs during covered period.

• Business mortgage interest payments or business rent/lease payments

• Business utility payments.

This is the information required by the Small Business Administration for loan forgiveness, but please note that your lender may require additional information.