SBA PPP Loan Forgiveness Application- 21st Century Bank Customers

The SBA now has three new versions of the PPP Forgiveness forms that reflect the changes implemented by the Economic Aid Act that was signed into law on December 27, 2020.  The different versions of these forgiveness forms are detailed and linked below.

The biggest change of note is that the new 3508S Forgiveness Form now applies to any loan of $150,000 or less.  This should simplify the forgiveness process for many.  Please read through this email carefully to see how these form changes affect your PPP Forgiveness Application.  It should be noted, that these form changes only apply to those that have not filed for loan forgiveness as of this date.  You do not need to reapply for forgiveness if you have already submitted your application to us. 

Updated 3508S Form:
The new 3508S Form is specifically for borrowers who have a PPP loan of $150,000 or less.  With the passing of the Economic Aid Act and its subsequent signing into law, Congress determined that any PPP borrowers under $150,000 should have a streamlined forgiveness process.  As part of this new form, borrowers with loans of $150,000 or less do not need to provide the Bank with any supporting documentation to show how they spent their PPP money.  The form will require you to certify that the borrower did spend the money as it was intended, but you do not need to provide that to the bank as part of your forgiveness application.
 
If your PPP loan was $150,000 or less please review the instructions for Form 3508S provided in the link below. 

Updated 3508EZ Form:
This form is for Borrowers with PPP loans of $150,000 or more and borrowers that did not reduce the number of employees between January 1, 2020, and the end of the covered period by more than 25%.

Updated 3508 Form:
This form is for Borrowers with PPP loans of $150,000 and has reduced the number of employees between January 1, 2020, and the end of the covered period by more than 25%:

If you are not able to have your questions answered by the SBA website, please send your question to SBAPPPForgiveness@21stcb.com

Per SBA guidelines, the bank will have 60 days from receipt of a completed Forgiveness Application to process and submit your information to the SBA.  The SBA will then have an additional 90 days for processing and review before they are required to render a decision.  The SBA reserves the right to issue full, partial, or denial of forgiveness.

Please note: whether you use the 3508, 3508EZ, or the new 3508S application, it requires the borrower to input the SBA PPP Loan Number and the Lender PPP Loan Number.  

Please input the Lender PPP Loan Number on the Forgiveness form.  This Lender Loan Number is found at the top of the PPP Loan Documents in the box titled “Loan No.”  We will input the SBA PPP Loan Number when we submit the information to the SBA.

Additional information on this topic can be found on the SBA’s website: PPP Loan Forgiveness (sba.gov).