NEW PPP Loan Forgiveness for S Corps & C Corps Via 3508S Form [Step by Step Instructions]

Описание: Step by step instructions on how to complete the new SBA Form 3508S PPP loan forgiveness application for S Corporations and C Corporations.

LINK TO SBA FORM 3508S - https://www.sba.gov/sites/default/fil...

LINK TO VIDEO ON WHICH PPP APPLICATION FORM TO USE -    • 3 PPP Loan Forgiveness Application Forms. ...  

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This video is intended for education purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.

PPP Loan Application Form 3508S

If you received a Paycheck Protection Program loan for less than $50,000, your forgiveness process just got easier. On October 8, the Small Business Administration (SBA) released PPP Loan Forgiveness Application Form 3508S which requires fewer calculations and less documentation for borrowers.

Here's what PPP borrowers need to know about this new, simplified forgiveness application.

What is Form 3508S?
The new Form 3508S is the simplest forgiveness application form yet making the COVID relief you need easier.

Both Form 3508 and Form 3508EZ required calculations to show the forgiveness amount you've requested. Alternatively Form 3508S simply asks you to provide the forgiveness amount you've requested and certify the conditions via initials and signatures.

Additionally, if you are using Form 3508S, your loan amount will not be reduced due to a reduction in headcount (FTE) or salaries or wages.

Your application will still be reviewed with supporting documentation for accuracy. Penalties for knowingly making a false statement to obtain forgiveness include up to 30 years imprisonment and fines of up to $1 million.

Who can use Form 3508S?
If your PPP loan amount was less than $50,000, you can use the simplified forgiveness Form 3508S. However, you are ineligible to use Form 3508S if your business has a contract or agreement of affiliation with other businesses and the PPP loan total across all affiliates is greater than $2 million.

Any business type can use Form 3508S, from contractors to corporations.

When filling out this new application form, there are seven total representations and certifications the borrower must verify:

The amount requested is not greater than the PPP loan amount, was used to cover eligible costs for forgiveness, includes eligible payroll costs of at least 60% of the loan forgiveness amount, and was used within the covered period

The government will pursue recovery of loan amounts if they were knowingly used for unauthorized purposes

The borrower accurately verified all payroll and non-payroll costs that make up the forgiveness amount requested

The borrower will provide the required documents verifying all costs and that the existence of any rent, lease, mortgage, or utilities were in place prior to February 15, 2020

The information provided in the application and supporting documentation is true in all material ways

Any tax documents provided are accurate and consistent with what has been or will be provided to the IRS

The borrower acknowledges that additional information may be requested by the SBA and a failure to provide the information will result in a denial of the forgiveness application

What documents will I need to provide?

If you received an EIDL, you will have to provide the EIDL advance amount (if received) and the EIDL application number. Your forgiveness amount will be reduced by the EIDL advance amount.

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