PPP Loan Forgiveness Update: January 20, 2021
Thank you for working with The State Bank to secure your funds through the SBA’s Paycheck Protection Program (“PPP”). As you are likely aware, the PPP allows a portion, or all, of your loan and accrued interest to be forgiven if the proceeds were used for eligible payroll and non-payroll costs.
Prior to January 19, 2021, the SBA permitted PPP borrowers to use one of three loan forgiveness applications, including Form 3508 (the “Full Application”), Form 3508EZ (the “EZ Application”) and Form 3508S (the “Simple Application”). The EZ Application simplified the forgiveness process for certain borrowers, while the Simple Application further streamlined the process for all PPP loans of $50,000 or less.
On January 19, 2021 the SBA released updated and revised forms for each of the Full, EZ and Simple applications. The 3508S – Simple Application is now available to all borrowers who have loans of $150,000 or less, and does not require the borrower to submit supporting documentation beyond the application itself.
To begin the loan forgiveness process, we recommend you print and review a copy of the applicable January 19, 2021 revised application and instructions relevant to you.
Links to the Full, EZ and Simple Applications, as revised January 19, 2021, along with instructions can be found below:
- Form 3508S Application and Instructions
- Form 3508EZ Application and Instructions
- Form 3508 Application and Instructions
If you need assistance with completing the Application, we recommend contacting your accountant, tax advisor, or attorney. Your payroll provider may be able to assist with the required payroll and employee information.
Additional resource information may be found at the SBA’s PPP webpage.
In order to expedite the processing of your Application, we strongly encourage you to submit your Application by using the online process provided below. While we will accept email or paper Applications, this may delay the processing of your Application.
Before starting the online process, we recommend that you have all of the information required in the Application, including supporting documents. Click here to submit your completed Application and supporting documentation.
The process allows you to:
- Upload your already completed Application (recommended in PDF)
- Upload all supporting documents (recommended in PDF)
All forms of Applications may be submitted through this link. Please note that if you have a loan for $150,000 or less you may use Form 3508S which does not require you to submit any supporting documentation as part of your Application. Documents and records are still required to be maintained by all applicants.
Upon submission you will receive an email confirmation that your Application has been received. Processing time will be dependent on the volume of Applications received by The State Bank. The CARES Act allows the Bank 60 days to approve an Application once a complete Application has been submitted. The amount of loan forgiveness is not final until approved by both The State Bank and the SBA.
Throughout this process, we will be working with ProBank Austin, a consulting firm we have partnered with before, to expedite the forgiveness process. You may receive emails from PPPLoanTeam@ProBank.com requesting additional documentation or details about your Application. To ensure emails do not end up in your Spam or Junk folder, you may want to add the domain name (probank.com) and the above email address to your “Approved Senders List” (also known as “white-listing”).
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