Louisiana Small Business Association
Join LSBA/Renew Your Membership
     
Coronavirus Resources for Small Businesses
Learn More
     

New Simplified Forgiveness Application For PPP Loans of $150,000 or Less

If your business received a PPP loan of $150,000 or less, you can apply for loan forgiveness using Form 3508S.

You will not have to do any calculations or provide any supporting documentation (like payroll records or tax forms).­ The only information required is:

  • Your PPP loan number.
    ­
  • The amount of your PPP loan.
    ­
  • Date you received your PPP loan.
    ­
  • Number of employees at the time you applied for the loan.
    ­
  • Number of employees at the time you are applying for forgiveness.
    ­
  • Amount of the loan you spent on payroll costs.

    (Payroll costs include salary, wages, paid leave, and employer contributions to employee group health, life, disability, vision, or dental insurance, as well as employer contributions to employee retirement plans)
    ­
  • The loan’s covered period.

    (The covered period starts the date you received your loan and ends on a date you choose that is at least 8 weeks but not more than 24 weeks later. You select the duration of your loan’s covered period as long as it lasts a minimum of 8 weeks and not more than 24 weeks.)
    ­
  • A certification that you spent the PPP loan on eligible costs and that you spent at least 60% of it on payroll costs.­

Documentation

For PPP loans of $150,000 or less, businesses are not required to submit any supporting documentation with their loan forgiveness application. However, businesses are required to keep records showing what the PPP loan was spent on for at least 3 years after the loan is forgiven, as the Small Business Administration may review or audit the loan to check for fraud. Page 4 of Form 3508S lists the records you are required to maintain (but not submit).

When to Apply for Forgiveness

You can apply for loan forgiveness any time after you have spent the loan. The deadline to file for forgiveness is 10 months after the end of your chosen covered period (see above for explanation of the covered period).

Where to Apply for Forgiveness

You apply for forgiveness with the same bank/lender that gave you the PPP loan. They may have their own version of Form 3508S and it may be online instead of on paper.

PPP Loans Greater than $150,000

There are different forms and documentation requirements for forgiveness of PPP loans of more $150,000. For more information about these loans and their forgiveness requirements, visit our website or the US Small Business Administration’s website.

Published: 01/28/2021

Visit: Small Business Alert Archive

Return to: LSBA Home Page

 

 

 

 

 

 

©2021 LSBA, P.O. Box 2587, Baton Rouge, LA 70821-2587 • Phone: 844-242-LSBA (5722) • info@LouisianaSBA.org