The Small Business Administration has issued the following Paycheck Protection Program (PPP) guidance and documents related to loan forgiveness.
- Interim Final Rule (IFR) on Amended Loan Forgiveness and Review Procedures (1/19/2021)
- PPP Loan Forgiveness Application Form 3508 (Revised 1/19/21)
- PPP Loan Forgiveness Application Form 3508EZ (Revised 1/19/21)
- PPP Loan Forgiveness Application Form 3508S (Revised 1/19/21)
- Disclosure of Certain Controlling Interests Form 3508D (1/19/2021)
SBA clarified on Jan. 23, 2021, that Form 3508D need only be submitted by a PPP borrower that received a loan before Dec. 27, 2020, and was directly or indirectly controlled by certain government officials or their spouses (president, vice president, member of Congress or executive department head) when the loan was made. Any such borrower that applied for forgiveness before Dec. 27, 2020, must file Form 3508D by Jan. 26, 2021. Any such borrower that has applied for or will apply for forgiveness on or after Dec. 27, 2020, must file Form 3508D within 30 days of doing so.
Dealer PPP borrowers who have yet to apply for loan forgiveness should carefully review the new loan forgiveness IFR, as it replaces all prior IFRs addressing loan forgiveness (see above). It is laid out in question-and-answer format and, among other things, lists new forgivable expense items added by the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act).
Dealer PPP borrowers that have yet to apply for loan forgiveness should use the appropriate revised forgiveness application to do so (see above). Reminder: to avoid having to make loan payments, PPP borrowers must file for forgiveness no later than 10 months after the end of their covered periods.
See SBA’s Website for other PPP loan information, including specifics on the reopened program which, in accordance with the Economic Aid Act, extends until March 31, 2021. Existing and prospective dealer PPP loan borrowers should consult legal counsel, accountants and lenders regarding program specifics.