- PPP EZ Loan Forgiveness Application Form 3508EZ
- PPP Loan Forgiveness Application Form 3508
- PPP Loan Forgiveness Application Form 3508S
Although interest on unsecured credit incurred before is a permissible use of PPP loan proceeds, this expense is not eligible for forgiveness
- During the PPP loan forgiveness process you may need to resubmit documentation that you provided during the PPP loan application process.
- Our online forgiveness application portal for 3508EZ and 3508 forms are not currently able to accept the following non-payroll costs, which were recently added by the SBA to the list of forgivable expenses: covered operational expenditures, covered property damage costs, covered supplier costs and covered worker expenditures. We will begin accepting these costs in several weeks and will email find here you when these updates are made. If you want to claim these expenses, you may want to wait until the updated online application is available.
The U.S. Treasury and Small Business Administration (SBA) are responsible for the rules of the program, which determine the amount of loan forgiveness you may receive. This can include full, partial or no forgiveness.
How is the amount of owner compensation that is eligible for loan forgiveness determined? What if I am an owner of multiple businesses with multiple PPP loans?
The applicable Interim Final Rules and FAQs provide that the amount of compensation of owners who work at their business that is eligible for forgiveness depends on the business type and whether the borrower is using an eight-week or 24-week Covered Period. The amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at the lesser of $20,833 per individual or the 2.5-month equivalent of their applicable compensation in 2019 (whichever is lower) in total across all businesses in which he or she has an ownership stake. For borrowers that received a PPP loan before and elect to use an eight-week Covered Period, this cap is $15,385 per individual or the 8 week equivalent of their applicable compensation in 2019 (whichever is lower) in total across all businesses in which he or she has an ownership stake.
If their total compensation across businesses that receive a PPP loan exceeds the cap, owners can choose how to allocate the capped amount across different businesses
As of , in Frequently Asked Questions (FAQs) on PPP Loan Forgiveness, the SBA stated that payments of interest on business mortgages on real or personal property (such as an auto loan) are eligible for loan forgiveness. Interest on unsecured credit is not eligible for loan forgiveness because the loan is not secured by real or personal property.
Business payments for a service for the distribution of electricity, gas, water, transportation, telephone or internet access for which service began before .
” Borrowers must provide mortgage interest documentation to substantiate these payments. And where the payor requests forgiveness for amounts paid to a related party, the related party cannot also request forgiveness for that same amount. Additionally, “[w]hile rent or lease payments to a related party may be eligible for forgiveness, mortgage interest payments to a related party are not eligible for forgiveness.”
Are any individuals with an ownership stake in a PPP borrower exempt from application of the PPP owner-employee compensation rule when determining the amount of their compensation that is eligible for loan forgiveness?
In an Interim Final Rule on Treatment of Owners and Forgiveness of Certain Nonpayroll Costs originally posted on , the SBA clarified that, for C- and S-Corp borrowers, owners with less than a 5% ownership stake are exempt from the owner-compensation cap.