If your business received a Paycheck Protection Program (PPP) loan, then repaying it is on the horizon. A provision was included in the program to have the loan forgiven if it was used on payroll costs, rent, or utilities during the eight to 24-week period after loans were dispersed. The Small Business Association has a few steps to have yours forgiven:
- Request an SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or the lender’s equivalent from your PPP loan provider. The 3508EZ and 3508S are shortened versions of the application for specific borrowers who meet certain criteria. Your lender can answer any questions you have.
- Collect all necessary documents:
- Payroll documents for the eight to 24-week period mentioned above. These include any bank account statements or third-party payroll reports with amounts paid to employees.
- Non-payroll documents such as receipts of business mortgage, rent payments, and/or business utility payments. A copy of the current lease agreement and copies of invoices and receipts for utility payments will also be needed.
- Tax forms for the eight to 24-week period of any employee wages, payroll tax filings, and unemployment insurance filings. Any documented payment receipts of employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount should also be included.
- Submit these documents and forgiveness forms to your PPP lender after the covered period ends. Consult with your lender for the deadline.
- Stay in contact with your lender as they’re responsible for notifying you of the forgiveness amount paid by the SBA and the date for which your first payment is due, if applicable. However, there may be more changes on the horizon for PPP loan forgiveness.
Contact Us for Help!
The deadline to apply for a PPP loan has passed, but if your company still needs working capital, then contact the Alamo EDC.