As if this year hasn’t been crazy enough, navigating through the Paycheck Protection Program (PPP) is also an eyebrow raiser. The big question lately is when to submit the loan forgiveness forms (3508, 3508EZ, and 3508S)? If you’re fearful that you might miss the 11/30/2020 deadline–which is displayed in the upper-right corner of the forms–don’t worry, we have good news for you!
The U.S. Small Business Administration (SBA) recently released a new entry in the loan forgiveness FAQs document addressing, “Is November 30, 2020 the deadline for borrowers to apply for forgiveness?”
The answer is no. Borrowers can submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan origination.
If you’re like me and wondering, “Well then why the heck is that date printed on the loan?” The reason for the expiration date in the upper-right corner is for the SBA’s compliance with the Paperwork Reduction Act and it reflects the temporary expiration date for approved use of the forms.
Here’s another insider tip: the accounting lobby is currently advising businesses and nonprofits to WAIT to submit their loan forgiveness applications until Congress takes up a bill called the Paycheck Protection Small Business Forgiveness Act. This bill would create an easy, almost ‘automatic’ form for loan forgiveness for loans under $150,000. Now wouldn’t that be nice?!
So if your PPP loan was less than $150,000, we recommend you sit tight until this bill is addressed by Congress.
To read more helpful FAQ on PPP from the SBA, check it out here.
As always, our team is happy to answer questions and help your organization navigate current financial challenges. Give us a call at (321) 233-3311 or email firstname.lastname@example.org.
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