Newly Announced Forms and Rules for PPP
We are aware that many of our clients are interested in applying for the second round of the PPP. As such, we wanted to provide you with several important updates regarding the new requirements attached to the legislation.
If you were able to file for the first round last year, you are still eligible for this second round as well. However, there are several new regulations and guidelines that you should be made aware of. The SBA and Treasury have released four new forms and one new rule attached to the second round of the Paycheck Protection Program. You can find a link to an article by the Journal of Accountancy for more detailed information below.
Application Form 3508S
This can be used by borrowers that received a PPP loan of $150,000 or less. For the application itself, borrowers do not need to submit supporting documentation but you do need to maintain payroll, nonpayroll, and other documents that could be requested during an SBA loan review or audit
Information Requested by the Form: borrower’s loan amount, disbursement
date, employee totals, covered period dates, amount of loan spent on payroll, amount of the loan for which forgiveness is being sought
Form 3508 and Form 3508EZ
For borrowers using these forms, you must submit payroll and nonpayroll documentation when submitting an application for loan forgiveness
Some individuals must use this to disclose controlling interest in an entity applying for PPP loans
Interim Final Rule (IFR)
This consolidates previous PPP forgiveness rules and adds new requirements that allow borrowers who received PPP loans during the first round last year to acquire an additional loan of up to $2 million. This is contingent upon being able to document a year-over-year revenue decrease of at least 25% for one reporting period in 2020.
If you have any problems finding the necessary information, our team would be happy to help.