Last week The SBA published Form 3508EZ, which is what they are calling a simplified loan forgiveness application. In fact, this is nothing more than an abbreviated form that can only be used by a specific type of borrower.
Just so you know, abbreviated does not necessarily mean simpler.
This form can only be used if the following conditions are met.
1 – The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees either before the loan was received or during the forgiveness period.
2 – The borrower did not reduce annual salary or hourly wages by more than 25% during the forgiveness period.
3 – The borrower did not reduce the number of employees. This would, of course, be quite difficult if you are a self-employed, sole proprietor.
The form is three pages rather than five, because it simply eliminates the portion which would be needed to accommodate all other borrowers.
The SBA has also issued revisions to the third and sixth final rules which deal with the basic changes in The PPP Loan Flexibility Act. There isn’t anything new here that I haven’t already provided. The grey areas in the law remain unclarified.
For help in preparing your PPP Loan Forgiveness Paperwork, please go to this address and push the Sign Up Now button.
Let me leave you with this one thought…
Things are slowly going back to normal. While Chicago’s Bars and Taverns reopened last week, our restaurants will again be allowed to have indoor seating limited to 25% of capacity. The harbors opened this morning and sidewalk cafes are now allowed on a neighbors property.
But I wouldn’t get too excited quite yet if I were you.
We still have a population which is blanketed in fear. Very few consumers are leaving the house. Did anyone have any difficulties getting a reservation for Father’s Day? The numbers that I see coming out of my office from many of my customers are rather dismal.
Let’s also remember that the supplemental income that many consumers are receiving in the form of additional unemployment compensation is due to end very soon. If these payments are extended, it’s one thing. At that point, many consumers will continue to be able to spend freely.
But what happens when the benefits aren’t extended? Sooner or later they will end. Where will we be at that point? We will certainly have a lousy economy with record unemployment. Probably we’ll be right in the middle of the worst recession of our generation.
I’m not writing this to scare you. The popular media is already doing a fine job of that. They don’t need my help.
Rather, I am writing this to counsel you to be cautious. We have a long way to go on this thing before any of us will be able to breathe a sigh of relief. I have stated before that we could be subjugated to the Phase Four Rules in Illinois for a very long time. Who knows when or if we will ever get an approved vaccine produced in large enough numbers for things to truly go back to normal?
Be careful. Rework your numbers. Refigure your income and expenses based upon reality rather than fiction. Don’t be presumptuous. We could be at this much longer than anyone would like.
But do so knowing that we are here to help. We’re right beside you in the foxhole, and we’re all going to get through this thing.
We’re going to get through it together.
Accounting Solutions Ltd. stands ready to complete its mission and purpose of protecting you, your family, and your business. If there is anything that you need, anything at all, please contact us today. I’m here and I remain,
Accounting Solutions Ltd.
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