The Small Business Administration (SBA) has recently 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)
Dealer PPP borrowers, who have yet to apply for loan forgiveness, should carefully review the new loan forgiveness IFR above , as it replaces all prior IFRs addressing loan forgiveness. 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). 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.