While Congress is still be debating the color of an orange, the SBA did something for small PPP loan holders.
Both parties have stated that they believe that a complete streamlined forgiveness PPP plan should be made for loans of $150,000 or less. But there has yet to be a bill passed stating as much.
While Congress dithers, the SBA acted. You the Borrower can apply for forgiveness of your Paycheck Protection Program (PPP) loan using this SBA Form 3508S only if the total PPP loan amount you received from your Lender was $50,000 or less.
However, a borrower that, together with its affiliates (see 85 FR 20817 (April 15, 2020) regarding application of SBA’s affiliation rules and the exemption of otherwise qualified faith-based organizations from SBA’s affiliation rules), received PPP loans totaling $2 million or more cannot use this form. If you are not eligible to use this form, you must apply for forgiveness of your PPP loan using SBA Form 3508 or 3508EZ (or lender’s equivalent form).
SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. Borrowers that use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. SBA Form 3508S also 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.
Unfortunately, there are not many in our practice that qualify for the 3508S.