The Economic Aid Act, signed into law on December 27, 2020, brought new relief in the form of additional PPP funding. It also served to streamline the forgiveness application process for loans of $150,000 or less. In January, the SBA made that promise a reality.
There is a new version of the form 3508S which requires borrowers to provide the following information:
- Basic information about the business, e.g., name, address, NAICS code, EIN, phone, and such.
- Information about the original PPP loan, e.g., SBA loan number, loan amount, loan disbursement date
- Number of employees at the time of loan application and forgiveness application/
- Covered period
- Amount of loan spend on payroll costs
- Requested loan forgiveness amount
The application requires certification that the borrower complied with all requirements set forth in the PPP rules. Borrowers using this application for a second draw PPP loan will also need to certify the accuracy of the calculation and documentation related to the revenue reduction.
The Economic Aid Act amended language in new relief package now allows PPP borrowers to also claim employee retention tax credits – ERTC. Some borrowers may have payroll costs the qualify for the ERTC during their covered period.
It is certainly more than advisable to consult with a professional to see if you can also qualify to claim this. Dunham Tax Professionals is here and ready to help. Make an appointment today.