Comments on: Applying for PPP Forgiveness with 3508S Form

By: Stephen Nelson CPA

Stephen Nelson CPA — Mon, 09 Nov 2020 12:48:47 +0000

In reply to Lynda Hall. Hmmm. I don't understand that. Sorry. Because the SBA guarantees loans (so lenders will lend). And then in case of PPP, the SBA pays off the loan if the borrower follows certain rules about spending the PPP loan proceeds.

By: Lynda Hall

Lynda Hall — Mon, 26 Oct 2020 16:56:53 +0000

I received my loan directly from the SBA…no other lending institution was involved. I am Self-Employed. Can I request Loan Forgiveness? If so…how do I submit the Form 3508S or EZ to the SBA?

By: Stephen Nelson CPA

Stephen Nelson CPA — Fri, 23 Oct 2020 15:46:59 +0000

In reply to Mike. Ignore the expiration date. That's basically a typo or error as SBA has now officially acknowledged.

By: Stephen Nelson CPA

Stephen Nelson CPA — Fri, 23 Oct 2020 15:46:09 +0000

In reply to Deryl Dyson.

I think what happens is, that extra money the borrower received due to the PPP loan amount error, they don’t get forgiveness for.

For example, they should have borrowed (say) $100K based on 11 employees but because they misclassified contractors, they got $200K based on a miscount f 20 employees. When they go to calculate forgiveness, they’ll make calculations based on the 11 employees. Probably but only roughly that’ll mean they get forgiveness for the payroll of the 11 employees and $100K.

I’m not sure there’s guidance on this issue, but it would seem to be keeping with the spirit of the statute to return the excess amount.

By: Deryl Dyson

Deryl Dyson — Thu, 22 Oct 2020 22:50:07 +0000

Stephen, have purchased many of your books and appreciate all of the information that you post regarding various topics. I have a situation where a client completed their own application and included sub-contractors in their original employee count. Now they are completing the forgiveness application and realize those should not have been included. The original 11 employees are still employed but 20 employees were listed on original application. Is there any guidance you are aware of when there is an incorrect amount originally reported? Might this just end up being a reduction of 9 employees and a portion of the loan not forgiven? Open to any suggestions. Thank you.

By: Mike

Mike — Wed, 21 Oct 2020 16:03:01 +0000

In reply to Ameer. The EIDL advance will reduce the forgivable portion of PPP, if you received $10k, then the $4500 won't be forgiven.

By: Mike

Mike — Wed, 21 Oct 2020 15:12:42 +0000

The top right hand corner of the form 3508S says that it has an “Expiration date: 10/31/2020.”What exactly does that mean? Does it mean that no one can utilize this form after 10-31-2020? So the Big G provides a form that only has a useable lifespan of 25 days?

By: Ameer

Ameer — Thu, 15 Oct 2020 22:18:20 +0000

In reply to Stephen Nelson CPA.

Thank you.
I used the whole $4,500 to pay me ‘Ameer’.

I just read on the SBA page that The $10,000 is an EIDL Advance and it is completely and separately forgivable provided I used it on the business and not on the same items I used the $4,500.

By: Max

Max — Thu, 15 Oct 2020 17:59:41 +0000

In reply to Stephen Nelson CPA. Thank you Stephen. Are there any options available to have the EIDL forgiven?

By: Max

Max — Thu, 15 Oct 2020 17:53:30 +0000

In reply to Stephen Nelson CPA. Thank you Stephen. Is there not anything one can do to get the the EIDL forgiven?