The Small Business Administration (SBA), in conjunction with the U.S. Department of Treasury, released a streamlined loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less to reduce the administrative burden placed on small businesses, as well as lenders, and significantly speed up the application process.

The new application, Form 3508S, is simplified and does not require calculations to be submitted with the application.

Eligible borrowers still need to include certifications and must submit documentation verifying forgivable payroll and non-payroll expenses. Documentation supporting their certifications does not have to be submitted with the application, but should be retained for six years in the event of an audit. The instructions do make it clear that forgiveness for these borrowers will still not be automatic.

Upon receiving an application, lenders must confirm the borrower’s certifications and documentation was received, but are not required to independently verify the borrower’s report information. Only when borrowers apply for forgiveness of costs should lenders confirm the borrower’s calculations up to the amount required for requested forgiveness amount.

The SBA began approving forgiveness applications and remitting forgiveness payments to PPP lenders for borrowers Oct 2.

Doeren Mayhew’s CPA and advisors stand ready to assist you through the SBA forgiveness process. Contact us today.