The federal government’s PPP loan was designed to allow contractors, self-employed individuals, and small businesses under 501 employees to get emergency funding to keep people on payroll.
The SBA has now approved a simple 1 page form for forgiveness on PPP loans under $50,000. Instructions can be found here.
The borrower must affirm that the funds were used for eligible purposes, that at least 60% of the loan went to payroll, and that owner compensation for a 24 week loan was no more than $20,833.
You will need to provide some documentation showing that the money was properly used, but you won’t need to provide documentation of eligibility or forgiveness calculations. You do need to maintain your own records for 6 years from the date that the loan is forgiven, in case of an audit.
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24 Comments On "SBA Approves 1 Page Forgiveness Application For PPP Loans Under $50K"
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Per the last page of the instructions Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application Form 3508S
Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the
Alternative Payroll Covered Period consisting of each of the following:
a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid
to employees.
b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period
or the Alternative Payroll Covered Period:
i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported,
or that will be reported, to the relevant state.
c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to
employee health insurance and retirement plans that the Borrower included in the forgiveness amount.
Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from
the Covered Period.
a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying
eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered
Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.
b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible
payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through
one month after the end of the Covered Period verifying eligible payments.
c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts,
cancelled checks, or account statements verifying those eligible payments
Dan, I love your site but I would refrain from posting things like this. You know there are certain people who will succumb to their yetzer hara and we don’t need yidden in the news for fraud.
How is this encouraging fraud?!?
Dan, I wasn’t saying you’re encouraging fraud. C’V I should ever say such a thing. I believe your intent is 100% pure but you and I both know that some will see this and be tempted to take out fraudulent loans. When it says “you won’t need to provide documentation of eligibility”, that’s like dangling a Romanian sausage in front of my Uncle Beryl. We know he’s gonna sneak away and eat the sausage when no one is looking.
Were you hiding in my bedroom? How did you know I ate that sausage?!
BTW, you can’t take out loans any longer, get the facts before criticizing.
To do so the person would need to go into a time machine, go back a few weeks in time and apply for a PPP loan. They then will need to travel back to the present time to apply for forgiveness. He will need to make sure that he has a functioning time machine as if he can’t travel back to the present time there might be 2 of the same person which will be extremely confusing for his wife.
If the iver still wants to get the loan after this whole explanation I don’t think you can really blame Dan.
sorry if the answer is obvious, i have not looked into the process yet, but why would one opt to do an 8 week period over a 24 week period? I only see the benefit of 2.5 months salary vs 8 weeks salary but i don’t see a drawback to the 24 week period, what am i missing? thanks.
Same. Can someone help me understand.
It is encouraging fraud by posting something like this on a “deal” site with the implication that this is some sort of “deal” for people to take advantage of. You may not mean for it to be taken like that, but there is no doubting some will and it might be better to not play a role in that.
You can’t take out loans anymore. You have no idea what you’re talking about. Also lenders were checking that you had a legit biz before they dispersed the loans. Many people that frequent this site own and operate legit businesses that needed the PPP loan.
one more question, if I got the 1k EIDL advance, do I deduct that from the forgiveness amount? Or can I still ask for forgiveness on the entire loan amount (it all went towards payroll)?
The 1k will be auto deducted by the sba from the ppp forgiveness
So if loan received was 65k non of it is forgivable?
a 65k PPP loan can still be potentially completely forgivable (minus the EIDL). It’s just that for the PPP loans that were for under $50,000 the process to have it forgiven is much simpler.
So this is for the PPP loan only , not the eidl sba loans under 50k, correct?
I’m not sure if people realize, that as of now (who knows what will be if there’s another stimulus) you cannot get this loan any more. Dan posted for people who have taken the loan already, before it expired.
Yup. They have no idea what they are talking about.
Just say thank you
Ok so forgive my lack of memory but while husband was hospitalized with covid (BH BH good now) with some help from his accountant I got this (small) loan secured for him for his small business which he is sole proprieotr/ DBA. He is the only employee. Loan was under 20k. Which means the money went to keep him afloat pay Bill’s rent his salary.
I assumed 25% was forgiven rest was a loan. Would this be simple or complicated for us, meaning it wasnt quite payroll it was more “ahem” transferring funds to his wife’s account so she could live and pay bills…
any answers? OP here thanks
Applied for forgiveness with form 3508z. I sincerely hope this wasn’t to my detriment in light of this new 3508s. Any thoughts anyone?
Where do I submit the application for forgivness?
Via your bank.