Updates to the Paycheck Protection Program (PPP) Loan Forgiveness application process continue to arise. On October 8th, the Small Business Administration (SBA) released Form 3508S, a new PPP Loan Forgiveness application for borrowers who have loans under $50,000. Borrowers that use Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in their salaries or wages.
Intended to be a simplified application, Form 3508S requires fewer calculations and less documentation for those eligible. However, while borrowers do not need to include calculations that determined their loan forgiveness, as part of its loans review process, the SBA may still request supporting information and documents that prove those calculations. Additionally, borrowers will still need to provide documentation for eligible payroll and non-payroll costs.
Records, which can be inspected upon request by the SBA Office of Inspector General, must be retained for six years after forgiveness is granted or the loan is repaid in full. These records include:
- Documentation submitted with the PPP loan application
- Documentation supporting the borrower’s eligibility certifications
- Documentation necessary to support the borrower’s loan forgiveness application
- Documentation demonstrating the borrower’s material compliance with PPP requirements