The U.S. Small Business Administration released a one-page form aimed at simplifying the process of applying for forgiveness of Paycheck Protection Program loans, along with newly revised and updated forms to meet the requirements of the latest stimulus legislation.

The COVID-19 relief package that Congress passed last month revived the PPP with $284 billion in funding for small businesses seeking forgivable loans to help them cope with the economic fallout from the coronavirus pandemic. It included a requirement for the SBA to issue streamlined forms within 24 days of the legislation being signed into law to simplify the process of applying for forgiveness, along with conditions meant to encourage more loans from community banks, especially minority-owned businesses who had trouble getting loans last year.

“The Small Business Administration met the requirement to issue the one page form for PPP loan forgiveness by 24 days after the date of enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner at Thomas Zollars, CPA, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published additional updated forms.”

The revised forms include:

• Form 3508S: A one-page forgiveness form for PPP loans of up to $150,000 along with instructions.
• Form 3508-EZ: A simpler application form for forgiveness for borrowers who meet specific safe harbor conditions.
• Form 3508: The complete application for forgiveness of PPP loan for those who don’t qualify for using either of the other forms above.

The SBA also issued Form 3508D where borrowers could disclose controlling interests in the business by other companies and whether any government officials are involved in the business.

The one-page Form 3508S forgiveness application will be especially helpful for small businesses who have borrowed less than $150,000 from the PPP.

“Form 3508S reduces the amount of information and documentation provided to the lender at the time the borrower applies for loan forgiveness,” wrote Justin Elanjian, partner-in-charge of PPP and ERC services at Aprio, a Top 100 Firm, in an article on the firm’s website. “However, the borrower must accurately calculate the requested loan forgiveness amount and verify the payments for the eligible costs included in it. Furthermore, while “no documentation is required to be submitted to the lender upon application for loan forgiveness,” the borrower must retain all employment records/payroll documentation in its files for four years and all other documentation for three years after the date the loan forgiveness application is submitted to the lender, and permit authorized representatives of the SBA — including representatives of its Office of Inspector General — to access such files upon request.”