Last Friday, May 15, the SBA issued new guidance for PPP loan forgiveness, and also published the official SBA PPP Loan Forgiveness Application (SBA Form 3508). We immediately went to work updating our free guide and calculator. Today, we’re releasing our new guide and an updated version of our free calculator. These tools will be helpful as you prepare to submit your PPP Loan Forgiveness application to the SBA through your lender.

Updated Guide and Calculator

Our SBA PPP Loan Forgiveness guide and calculator are absolutely free, and you can download them by going to this page. We’ve created a Microsoft Excel version and a Google Sheets version of the calculator. The guide is a 4-page PDF. Get them both here.

What Changed?

The Community Bankers Association of Georgia has a good update here. To sum up the major changes, other than the issuance of the actual application, here are the pertinent bullet points from that CBA of GA article.

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles, as opposed to exactly 8 weeks from the day you received funding.
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after borrowers received their PPP loan.
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
  • Statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
  • The new exemption for borrowers whose good-faith, written offers to rehire workers were declined.

What’s the PPP Loan Forgiveness Application Look Like?

You can download that document (PDF) here. To sum it up, it looks a lot like a 1040 tax return. That’s good news for our accountants, whose job it is to help us work through forms like this one, but it’s bad news for anyone who thought they could do it themselves. The application is complex, which is why we’ve done the following:

  • Created a guide, much clearer than the official SBA instructions. You can see those for yourself here.
  • Created a calculator that will help you prepare to complete your official application.
  • Vetted thousands of accountants, and set up a simple matching process for any small business to find the right accountant in a few steps.

What Happens Next?

We expect the SBA to continue updating its guidance for PPP loan forgiveness as more and more businesses get funding and then begin the forgiveness application process. We encourage everyone who received a PPP loan to go ahead and download the SBA forgiveness application, so you can begin to prepare (or find an accountant for help). Eight weeks after you received your PPP loan, you will have most of the data that you’ll need to complete your forgiveness application. However, we also encourage everyone who received a PPP loan not to wait, but rather to keep accurate and up to date information on your payroll costs and other necessary payments that fall under the acceptable forgiveness uses for your PPP loan.

If you are like most people, you will need help from your accountant. We encourage you to invite your accountant to join our network and help you complete and submit your PPP forgiveness application through your bank via our portal. Invite your accountant here or find a virtual accountant here.