Ever since the Paycheck Protection Program (PPP) was first introduced earlier this year, the phones at Walter S. Sanders & Associates, business consultants in Tampa, have been ringing.
Many small businesses in our community and around the country applied for a loan through Paycheck Protection Program (PPP), which was part of the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
The program – which was intended to help small businesses keep maintain their payroll, hire back employees who may have been laid off, and cover their overhead – was in the news a lot. There were problems with the program from the onset. People had difficulties applying for the loans. The funds initially allocated ran out before many small businesses were able to receive assistance – partially due to the fact that a number of large companies applied for and received millions of dollars in these forgivable loans (some of them were shamed into returning the money, but many others kept it).
Additional funding was provided for the program but then the original timelines established for the program proved to be impractical and had to be changed. In fact, many changes and revisions were required.
Applications are no longer being accepted for PPP loans. Like the rest of the country, small businesses must wait for Washington to approve new relief funding.
PPP Loan Forgiveness
If you received a PPP loan, it is important that you understand that forgiveness of your PPP loan is not automatic. You must apply, through your lender, for forgiveness.
Earlier this month, the Small Business Administration in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
That means the SBA now offers three different application forms for those seeking forgiveness of their PPP loan:
- Form 3508S – this is the new form you can use if your loan was $50,000 or less and you have met the criteria for forgiveness.
- Form 3508EZ
- Form 3508
Your lender may provide you with an equivalent form. Just as you had to submit your application for the loan through the lender, you will have to submit the forgiveness application through them as well.
With all the changes to the program, it’s not surprising that so many people are confused at this point. The SBA did put together an FAQ related to PPP loan forgiveness that might help or might just leave you more confused.
If you would like to discuss the PPP loan for your small business in Tampa with a CPA, please contact Tampa small business consultant Brian Sanders.