3508S Forgiveness Application
3508S Forgiveness Application
On December 27, 2020, the President signed into law the Consolidated Appropriations Act (the “Act”), a $900 billion legislative package that, among other things, renews the Paycheck Protection Program (PPP) that was established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Act allocates $284.45 billion for PPP loans to eligible new borrowers, as well as a second-draw to qualifying borrowers that already received a loan under the first round of PPP funding. As part of the new legislation, on January 19, 2021, the SBA released a streamlined forgiveness application for all PPP loans of $150,000 or less.
Form 3508S applies to borrowers who meets the following criteria:
SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. Borrowers can apply for forgiveness of your First or Second Draw Paycheck Protection Program (PPP) Loan using SBA Form 3508S only if your loan amount was $150,000 or less for a First or Second Draw PPP Loan.
- If you are not eligible to use this form, you must apply for forgiveness of your PPP loan using SBA Form 3508 or 3508EZ.
- Each PPP loan must use a separate loan forgiveness application form. You cannot use one form to apply for forgiveness of both a First and Second Draw PPP loan.
- SBA Form 3508S does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review or audit processes.
- Complete this SBA Form 3508S in accordance with the instructions below, and submit it to your Lender (or the Lender that is servicing your loan).
Forgiveness Processing Steps - Please Read Carefully
Step 1: Download and Complete the Following Items.
Once downloaded, complete the 3508S Loan Forgiveness Application according to the form's instructions.
Step 2: Submit your Application.
No supporting documentation is required to be submitted with your application.
Upload your completed Application.
Step 3: AFNB will Review Items for Completeness.
In order to ensure accuracy, AFNB will review your application prior to submitting it to the SBA.
Step 4: AFNB will determine if your loan is eligible for forgiveness based on SBA's Guidelines for Loan Forgiveness Guidelines.
Note: Due to the volume of PPP loans it may take up to 60 days for AFNB to notify you if your loan is eligible for loan forgiveness.
Step 5: Submission to the SBA.
AFNB will submit your application to the SBA. Your Loan Officer will contact you once SBA issues it's decision.
Note: Approval may take SBA up to 90 days after AFNB submits your forgiveness application.
AFNB cannot provide financial, legal or tax advice, including interpretation of the SBA’s rules or guidance for loan forgiveness, or how they may apply to the circumstances of your business. Please seek financial, legal or tax advice from your financial, legal and/or tax professional(s). Please note that the information above is taken directly from the SBA and/or the SBA Paycheck Protection Program Loan Forgiveness Application, and is posted here solely for your convenience. It is not intended to be, and should not be considered, comprehensive or definitive. Please be sure to consult the SBA and/or U.S. Treasury PPP websites for information related to loan forgiveness and the PPP program. Guidance and rules directly from the SBA and/or the U.S. Treasury will supersede and control over any information below or in any FAQ posted here, to the extent of any conflict.