New PPP Forgiveness Form for Small Loans
Louisiana REALTORS • October 12, 2020
Source: National Association of REALTORS®
On Thursday, October 8, the Small Business Administration (SBA) and the Treasury Department announced the release of a new, further simplified forgiveness application for PPP borrowers with loans of $50,000 or less. The new application - Form 3508S - is one-and-half pages long, and requires the borrower to certify that the amount they are seeking forgiveness for was spent in accordance with the PPP requirements. Documentation must be submitted to their lender confirming payroll costs, employee numbers, business mortgage interest payments, rent and utility costs for the covered period. The new forgiveness application is simpler for eligible borrowers to use, and will reduce the processing time on the part of the lenders.
In addition, borrowers who use the Form 3508S are exempt from the PPP requirements for maintaining the number of "Full Time Equivalent" employees and not reducing employee wages. Thus, borrowers with loans of $50,000 or less who use the new form are eligible to have their full PPP loan amount forgiven even if economic circumstances kept them from meeting one or both of those requirements of the program.
NAR has been supportive of further streamlined forgiveness rules for small PPP borrowers, and will continue to advocate for future improvements to the program. The SBA is currently processing forgiveness applications provided by the SBA lenders. Borrowers have 10 months from the end of their covered period to submit the Loan Forgiveness Application and accompanying documents to their lender, and the lender then has 60 days to make a determination on the loan forgiveness request.
Construction Update: Act Nos. 239 and 422 Eric Landry, Breazeale, Sachse & Wilson, L.L.P. Louisiana REALTORS® Counsel
NAR is pleased to share the latest consumer guide focused on how the VA Home Loan offers a great path to homeownership for current and former military service members. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: What Is the VA Home Loan Guaranty? 10 Tips for Packing Smartly for a Move State and Local Tax (SALT) Deductions Buying a Historic Property Making Your Home More Energy Efficient Working with a Real Estate Attorney Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for the next consumer guide, which outlines requirements for private mortgage insurance and how it protects lenders and consumers.
Discover how Louisiana real estate agents can use AI to create compelling listings, reach serious buyers faster, and streamline marketing while keeping a personal touch.
