Loans – Up to date PPP loan forgiveness purposes and guidelines unveiled
The US Small Enterprise Administration (S(BA)) and Treasury on Tuesday revealed up to date Paycheck Safety Program (PPP) loan forgiveness steering and kinds, together with a one-page software for debtors that acquired a PPP loan of $150,000 or much less.
That kind, known as the PPP loan Forgiveness Software Type 3508S, can be utilized by debtors that acquired a PPP loan of $150,000 or much less. The shape seeks details about the borrower’s loan quantity, disbursement date, worker totals, coated interval dates, quantity of the loan spent on payroll, and the quantity of the loan for which forgiveness is being sought. Debtors aren’t required to submit any supporting documentation with the appliance however are mandated to take care of payroll, nonpayroll, and different paperwork that could possibly be requested throughout an S(BA) loan evaluate or audit.
The S(BA) and Treasury launched two different PPP loan forgiveness purposes: Type 3508 and Type 3508EZ. Debtors should submit payroll and nonpayroll documentation when making use of for loan forgiveness with these kinds, which give lists of the required paperwork. As well as, the S(BA) and Treasury launched Type 3508D, which sure people should use to reveal controlling curiosity in an entity making use of for a PPP loans.
Additionally launched Tuesday night time was an interim remaining rule (IFR) consolidating prior PPP loan forgiveness guidelines and incorporating adjustments made by The Financial Help to Onerous-Hit Small Companies, Nonprofits, and Venues Act, P.L. 116-260, which revived the PPP with $284 billion in contemporary funding and created second-draw loans, which permit debtors that acquired PPP loans throughout the first iteration of this system final yr to hunt a second loan of as much as $2 million supplied they meet tightened measurement necessities and might doc a year-over-year income lower of at the least 25% for one reporting interval in 2020.
The IFR and all 4 of the kinds launched Tuesday night time apply to first-draw or second-draw PPP loans.
The relaunched PPP started accepting purposes Jan. 11 from neighborhood monetary establishments that loan primarily to underserved companies. The applying window opened Jan. 14 for lenders with $1 billion or much less in belongings and for all lenders on Tuesday.
The S(BA) introduced Tuesday that that it permitted about 60,000 PPP loan purposes submitted by almost 3,000 lenders, for over $5 billion from this system’s re-opening by Jan. 17.
AICPA consultants will present a abstract of the most recent PPP kinds and steering throughout a web based City Corridor on Thursday at Three p.m. ET. The occasion is free for AICPA members and $39.99 for nonmembers.
Accounting corporations can put together and course of purposes for the PPP on the CPA Enterprise Funding Portal, created by the AICPA, CPA.com, and fintech accomplice Biz2Credit.
AICPA consultants talk about the most recent on the PPP and different small enterprise support packages throughout a biweekly digital city corridor. The webcasts, which give CPE credit score, are free to AICPA members. Go to the AICPA City Corridor Sequence webpage for extra info and to register.
The AICPA’s Paycheck Safety Program Sources web page homes assets and instruments produced by the AICPA to assist tackle the financial affect of the coronavirus.
For extra information and reporting on the coronavirus and the way CPAs can deal with challenges associated to the outbreak, go to the JofA’s coronavirus assets web page or subscribe to our e-mail alerts for breaking PPP information.
— Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.
