PPP LOAN FORGIVENESS
On October 8, the SBA released Form 3508S (link to application and instructions below), a simpler two-page application for PPP loans of $50,000 or less, to streamline the PPP forgiveness process for small businesses. No matter the size of your PPP loan, please review the following six steps to help you navigate the loan forgiveness process. If your PPP loan was $50,000 or less and you have NOT already submitted your forgiveness application, please fill out Form 3508S.
It may be helpful to visit the SBA's Frequently Asked Questions before you begin the forgiveness process.
if you are an Armstrong Bank PPP loan customer and already submitted your 3508EZ or 3508 forgiveness application, your application is being reviewed.
Determine your application form: 3508S OR 3508EZ OR 3508
Each borrower must complete the appropriate application form (3508S, 3508EZ, or 3508) along with submitting all supporting documentation.
3508S Application Form (released 10/8/20)*
Businesses that meet the following guidelines may complete the 3508S Form:
- Loan totals $50,000 or less (a borrower that, together with its affiliates, receives PPP loans totaling $2 million or greater cannot use the 3508S form)
*With Form 3508S, you are not required to submit your certification calculations with the application, but you still must submit documentation verifying forgivable payroll and non-payroll expenses and retain your supporting documentation for six years.
3508EZ Application Form
Businesses that meet the following guidelines may complete the 3508EZ Form:
- Self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25% and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives from CDC related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%.
Businesses that DO NOT meet the guidelines outlined on the 3508S or 3508EZ Instruction Forms must complete the 3508 Form.
Gather all required documentation & complete application
This will require certain payroll and expense documentation and proof of expense. Without ALL of the required information, the application may be considered incomplete.
What supporting documentation should be included?
- Specific payroll document requirements that are detailed in 3508S, 3508EZ, or 3508 instructions.
- Full-time equivalent (FTE) supporting information indicating the average number of FTE employees on your business payroll per month.
- Payroll tax filings (IRS form 941) for the coverage period chosen (8 weeks OR 24 weeks).
- Please do not submit your PPP Forgiveness application before your selected coverage period ends. Applications submitted before this will be considered withdrawn and will need to be resubmitted at a later date.
- Non-payroll document requirements that are detailed in 3508S, 3508EZ, or 3508 instructions (eligible payments from the 8- or 24-week loan covered period).
Submit your application & documentation
Once you have compiled the necessary information and completed the appropriate application, you may submit your information to Armstrong Bank. Please respond to the previously received secure email from firstname.lastname@example.org to ensure sending a SECURE EMAIL to Armstrong Bank. Please follow the instructions in the email that you receive to open the secure email.
If you did not receive the previously sent secure email, please email email@example.com and a secure email will be sent to you.
Once you have provided the completed application along with the necessary documentation, Armstrong Bank’s PPP Forgiveness Team will review, contact you for additional information if necessary, and upload your request to the SBA. The SBA has been quite clear that they will require ALL of the supporting documentation in order to evaluate PPP Forgiveness.
The SBA has 90 days from the date Armstrong Bank forwards your file to determine forgiveness. This is the reason that it is important to fully and accurately complete the appropriate application and provide ALL requested supporting documentation.
Armstrong Bank will notify you with the SBA's decision on the amount of forgiveness once we are advised.
How long does the process take?
Once your application is submitted to us, the forgiveness process may take up to 150 days: a maximum of 60 days for Armstrong Bank to review, followed by up to 90 days for the SBA to review. We will be in touch should further information be required.
What if you have questions?
Above are links to the applications (3508S, 3508EZ, and 3508) and their instructions. Below are links to helpful resources and FAQ's, including the SBA's FAQ's.
If necessary, it may be appropriate to consult your CPA or accountant to navigate the process.
RESOURCES & LINKS:
Armstrong Bank wants to provide you the most appropriate information to allow you to complete this important loan forgiveness process. Nevertheless, please know that Armstrong Bankers cannot provide advice on interpretation of the SBA’s rules or guidance for loan forgiveness or how these rules may apply to the particular circumstances of your business. Please seek the advice from your legal and/or accounting professional(s) if you are unsure about the specifics of your application. Please note that the information provided here is generally taken directly from the SBA and/or the SBA Paycheck Protection Program Loan Forgiveness Application and is posted solely for your use. It is not intended to be comprehensive or all-encompassing. Please consult the Small Business Administration
and/or U.S. Department of Treasury
PPP websites for information related to loan forgiveness and the PPP program. Guidance and rules directly from the SBA and/or the U.S. Treasury will supersede any information contained in this website or in anything that may conflict with the direct guidance mentioned.