WASHINGTON, D.C.—October 13, 2020—The Small Business Administration issued new Paycheck Protection Program loan forgiveness guidance and documents. The PPP Forgiveness Application Form 3508S and 3508S Instructions are for those small businesses that secured a PPP loan of $50,000 or less. The most significant benefit of the new form is that employee reductions and salary reductions are no longer penalized. Additionally, the new form does not require submitting mathematical calculations on how the funds were spent, but it still requires the borrower to submit to the lender evidence (bank statements, invoices, etc.) that the funds were properly spent. The SBA has also reduced the lender’s responsibility to “verify” the evidence submitted, which should help to expedite the process.
Because the maximum PPP loan amount is $50,000, this new loan forgiveness application will be most beneficial to self-employed gig workers and businesses with just a few employees. There are approximately 3.57 million outstanding PPP loans of $50,000 or less, totaling approximately $62 billion of the $525 billion in PPP loans. SBA just recently began approving PPP forgiveness applications and remitting forgiveness amounts to lenders on October 2, 2020.
Nina Ozlu Tunceli, Executive Director of the Arts Action Fund, provides Zoom Office Hours on Friday mornings at 11:00 a.m. ET where she hosts a free Q&A form about CARES Act topics, including answers to loan forgiveness questions. Attend her office hours, or check out these resources for CARES Act issues:
- Office Hours with Nina(Free Q&A forum about the CARES Act on Fridays at 11:00 a.m. ET)
- Book Nina for Your Own Webinar (Free service to share tips on CARES Act funding)
- CARES Act Table (updated 10/8/20)
- New PPP Loan Forgiveness Application Form 3508S
- New PPP Loan Forgiveness INSTRUCTIONS for Form 3508S
- New PPP Loan Forgiveness Frequently Asked Questions (FAQs)
The Arts Action Fund continues to lobby for another CARES Act Economic Relief package to be passed for a second round of PPP loans, Pandemic Unemployment Compensation extension, NEA grant funding, cultural venue funding, state and local government funding, and much more.