Harrison Support is here to help you in this changing business environment.
Not only are we challenged as business owners, but as funding becomes available, we are challenged to appy for funding, and to understand and apply for any forgiveness that is being offered!
One of our services is assisting our clients through the application process for these resources.
Let us all come together to help, and give support!
PPP Forgiveness Process
The SBA recently announced a simpler and more streamlined process for forgiveness of the Paycheck Protection Program (PPP) loan using the new SBA Form 3508S -- but only if the total PPP loan amount you received from your Lender was $50,000 or less. Those who may use this form are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. This form does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process.
Since the loan forgiveness application has to go through the lender (the bank that submitted your original PPP paperwork) it is best to wait until you receive instructions from the bank or check their website as to whether you should apply for forgiveness via electronic portal or submitting an actual form. Some banks are delaying creating their portal or submitting forgiveness applications until they receive concrete clarification from the SBA on the review process.
If you do want to proceed with the 3508S application, here are a few things to note and what will need to be collected:
" You now have a choice to make the covered period either 8 or 24 weeks following the funding date. We recommend that you use the 24 weeks so that most, if not all, of the funds are reflected in the payroll reports. This will make the supporting documentation easier and clearer for SBA review and approval.
" The deadline to submit the forgiveness application is 10 months after the covered period used above.
" SBA PPP loan number & lender PPP loan number - the bank should be able to provide these to you.
" PPP loan amount and disbursement date - This should be on your bank statement.
" FTE employees at time of loan application.
" FTE employees at time of forgiveness application.
" The EIDL advance amount (EIDL is also known as an EIDL Grant or EIDG). This is only the advance money that was put into your account. Do not confuse this with an actual EIDL loan that may have been taken from the SBA.
" Your bank will not likely know the EIDG application number. It will need to be provided by the SBA.
" Your forgiveness amount is the PPP loan amount less any EIDG funds received provided you spent the funds on qualified expenses (mostly payroll) and did not reduce your FTE or wages.