The Economic Aid Act passed on December 27th, 2020 included details about a new PPP forgiveness form for loans under $150,000. The SBA decided to rework the 3508S form rather than creating a new forgiveness form. The former 3508S used to be for loans under $50,000, but now it it for all loans under $150,000. This is forgiveness for all PPP loans (PPP1 and PPP2).
This is NOT blanket forgiveness that borrowers were hoping for, but it is a simpler form.
Borrowers under $50,000 are still getting some blanket safe harbor from wage reductions and FTE reductions, but this is not a blanket forgiveness of the loan.
This form does not require borrowers to even show the calculation of their forgiveness request, but they are still going to have to show the banks what they spend the PPP loan on in order to qualify for forgiveness. It is straight-forward and easier to fill out than even the 3508EZ form.
Here is the new 3508S form and instructions for loans under $150k (150,000): https://home.treasury.gov/system/files/136/PPP–Loan-Forgiveness-Application-Instructions–Form-3508S-1192021.pdf
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Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.