What application should I use?

There are currently three different SBA PPP Forgiveness Applications a borrower must choose from. Applications are submitted directly to the lender who disbursed the PPP funds.

  1. Form SBA 3508 – Loan Forgiveness Application.
  2. Form SBA 3508EZ – The EZ form can be used to apply for forgiveness if the borrower can check at least one of three boxes found within the SBA 3508EZ Instructions Form, otherwise the SBA 3508 form must be used.
  3. Form SBA 3508S – A borrower may use the form only if the borrower received a PPP loan of $50,000 or less.


When is the first PPP payment due? [1]

  • As long as a borrower submits its loan forgiveness application within 10-months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by SBA.
  • If the loan is fully forgiven, the borrower is not responsible for any payments.
  • If only a portion of the loan is forgiven, or if the forgiveness application is denied, any remaining balance due on the loan must be repaid by the borrower on or before the maturity date of the loan.
  • Interest accrues during the time between the disbursement of the loan and SBA remittance of the forgiveness amount.
  • All PPP loans carry an interest rate of 1.0%. It is important to remember that interest accrues from the date of loan disbursement.
  • The borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven.
  • The lender is responsible for notifying the borrower of remittance by SBA of the loan forgiveness amount (or that SBA determined that no amount of the loan is eligible for forgiveness) and the date on which the borrower’s first payment is due, if applicable.


Why is the expiration date on the application October 31, 2020?

  • The expiration date in the upper-right corner of the posted PPP loan forgiveness application forms is displayed for purposes of SBA’s compliance with the Paperwork Reduction Act and reflects the temporary expiration date for approved use of the forms.
  • The date will be extended, and when approved, the same forms with the new expiration date will be posted.


Is October 31, 2020 the deadline for borrowers to apply for forgiveness?

  • Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.
  • If a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred, and the borrower must begin making payments on the loan.
  • The recent  SBA PPP FAQ released on October 13, 2020 answers a common question relating to the expiration date on the SBA 3508 forms. The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner.


Are PPP loan payments deferred? [2]

  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender.
  • If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the “covered period.”


SingerLewak stands prepared to assist our clients with their PPP Loan Forgiveness Application. Below is a list of services we can provide.

  1. Assist with guidance on completing the application, assisting client by ensuring all required information is given in its proper and complete format. This guidance will be provided as a source of oversight.
  2. Provide feedback after client has prepared the Forgiveness Application and supporting documentation.
  3. Perform agreed upon procedures (AUP) engagement to test the reliability of the supporting information. A report will be issued to client that can be presented to the lender when the Forgiveness Application is submitted.


Visit the SingerLewak Business Resource and Updates[3] page for most current news and information regarding PPP loans.

[1] https://www.sba.gov/sites/default/files/2020-10/PPP%20–%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29.pdf

[2] https://www.journalofaccountancy.com/news/2020/oct/ppp-loan-repayments-deferral-period.html

[3] https://singerlewak.com/index.php/thought-leadership/covid-19-business-resources-and-updates