Paycheck Protection Program
PPP Loan Forgiveness Application Form 3508S (revised January 19, 2021)
SBA Form 3508S (01/21)
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Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent
requirements established or guidance issued by a State or local government, during the period starting March 1, 2020 and
ending on the date on which the national emergency declared by the President with respect to the Coronavirus Disease 2019
(COVID-19) expires related to maintenance standards for sanitation, social distancing, or any other worker or customer
safety requirement related to COVID-19, but does not include residential real property or intangible property.
Eligible nonpayroll costs cannot exceed 40% of the total forgiveness amount. An eligible nonpayroll cost must be either paid
during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the
billing date is after the Covered Period. Count nonpayroll costs that were both paid and incurred only once.
FTE and Salary/Wage Reductions: Borrowers that received a PPP loan of more than $50,000 and Borrowers of $50,000 or less that
together with their affiliates received First Draw PPP Loans totaling $2 million or more or Second Draw PPP Loans totaling $2
million or more must adjust their “Requested Loan Forgiveness Amount” due to statutory requirements concerning reductions in
either full-time equivalent employees or employee salary and wages. Such a Borrower is not subject to any reductions if the
Authorized Representative of the Borrower can attest (1) that the Borrower did not reduce annual salaries or hourly wages of any
employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period,
and (2) that either (a) the Borrower did not reduce the number of employees or the average paid hours of employees between
January 1, 2020 and the end of the Covered Period or (b) the Borrower was unable to operate during the Covered Period at the same
level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between
March 1, 2020, and December 31, 2020 (or, for a PPP loan made after December 27, 2020, requirements established or guidance
issued between March 1, 2020 and the last day of the Covered Period) by the Secretary of Health and Human Services, the Director
of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance
of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. If the
Borrower does not satisfy these requirements and is potentially subject to reductions in its Requested Loan Forgiveness Amount, the
Borrower must follow SBA Form 3508 and its instructions to calculate its Requested Loan Forgiveness Amount. The Borrower is
not required to submit the Form 3508 or any related documentation with this forgiveness application. However, SBA may request
information and documents to review those calculations as part of its loan review and audit processes.
Borrower Responsibilities: The Borrower must comply with all requirements in the Paycheck Protection Program Rules (Sections
7(a)(36), 7(a)(37), and 7A of the Small Business Act, the PPP interim final rules, and SBA guidance issued through the date of this
application), and must attest to its compliance on the Loan Forgiveness Application. Those requirements include the following:
• Requested Loan Forgiveness Amount (which may not exceed the principal amount of the PPP loan):
o must have been used by the Borrower to pay business costs that are eligible for forgiveness (payroll costs to retain
employees, business mortgage interest payments, business rent or lease payments, business utility payments,
covered operations expenditures, covered property damage costs, covered supplier costs, or covered worker
protection expenditures) during the Covered Period;
o must include payroll costs equal to at least 60% of the Requested Loan Forgiveness Amount;
o for any owner-employee (with an ownership stake of 5% or more) or self-employed individual/general partner, must
not exceed 2.5 months’ worth of compensation received during the year used to calculate the PPP loan amount,
capped at $20,833 per individual in total across all businesses; and
o for loans of more than $50,000 and loan of $50,000 or less to Borrowers that together with their affiliates received
First Draw PPP Loans totaling $2 million or more or Second Draw PPP Loans totaling $2 million or more, must
meet the requirements of either (A) or (B): (A) is not subject to reductions because the Borrower did not reduce
annual salaries or hourly wages of any employee by more than 25 percent during the Covered Period compared to
the most recent full quarter before the Covered Period and either (1) the Borrower did not reduce the number of
employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period or
(2) the Borrower was unable to operate during the Covered Period at the same level of business activity as before
February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and
December 31, 2020 (or, for a PPP loan made after December 27, 2020, requirements established or guidance issued
between March 1, 2020 and the last day of the Covered Period the last day of the Covered Period) by the Secretary
of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational
Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any
other work or customer safety requirement related to COVID-19, or (B) the Borrower has included any required
reductions as described in SBA Form 3508 and its instructions.
• The Borrower must accurately calculate the Requested Loan Forgiveness Amount and verify the payments for the eligible
costs included in it.
• If the loan forgiveness application is being submitted for a Second Draw PPP Loan, the borrower must submit or have
already submitted all required revenue reduction documentation and have used all First Draw PPP Loan amounts on eligible
expenses prior to disbursement of the Second Draw PPP Loan.
If the funds were knowingly used for unauthorized purposes, the federal government may pursue recovery of loan amounts and/or
civil or criminal fraud charges.