How to Fill Out PPP Loan Forgiveness Application Form 3508S

today i'm going to share with you how to fill out a ppp forgiveness application specifically if you're self-employed an independent contractor sole proprietor gig worker if your loan was for under 150 000 then this video is for you you're not gonna wanna miss this so you heard right there is a revised forgiveness application known as the 3508 s form they came out with a version of this months ago but they have since updated it hence why i'm making this updated video now in addition to showing you how to fill in the application i'm going to walk you through the whole thing i am going to talk to you about some of the most frequently asked questions i get specifically about paying yourself or the covered period so let's dive right in hey and real quick before we dive in don't forget to give this video a like it really helps the youtube algorithm and me i appreciate it so thanks okay this is what the forgiveness application looks like you can see right at the top it says that it is for a borrower that only has received a ppp loan of 150 000 or less the maximum owner's compensation for the sole proprietors out there with no employees was just over twenty thousand dollars so this is for you now to be clear if you got first draw you're going to need to fill in one of these forms to get forgiveness and yes you do have to apply for forgiveness it's not automatic and if you receive second draw you will have to go through this process a second time it's not like a one and done deal you do have to fill out two forgiveness applications now just be aware that your lender may create some sort of online portal or it might pre-populate some information for you in that case you won't need to fill in one of these but it's still just a very good idea to know how to gather all the information ahead of time and you'll see what i mean so let's get started okay right here at the top you're going to fill in your business legal name now that's going to be just your first and last name if you have a different type of corporation or corporation name like a dba or a trade name if you look over here it tells you to fill that in there so go ahead and do that if that applies to you otherwise just your full legal name for business legal name right here where it says business address many of you are just going to write your home address simply because you don't have an office that you work out of or you work out of your home so go ahead and put that home address there unless you do have a separate physical business address for naics code this can get very confusing for people what is that where do you find it i put a link down below in the description of this video where you could go and type in what you do and then it'll give you that code now you may already have it so you can go ahead and use it if you do but if you need to find it just go ahead and search now if you're not sure you can always check with the lender but you know how it is trying to get in touch with them so do your best to find what most accurately applies to your business right here they're asking for business t i n now that could be your ein number or your social security number essentially they're looking for your tax identification number so if you applied using your social security number this is the forgiveness application just put that social security number however if you had an ein and you know you applied for one and you used it when you initially applied then go ahead and put that ein number up next for business phone primary contact and email address for the business phone if yes your cell phone and many of us applied using the cell phone number so they could send us like the text you know like verification then go ahead and put that down if you have a separate business number and that's what you applied with then go ahead and just make sure it matches up with that application for primary contact it's going to be yourself because it was a ppp loan for you so go ahead and put your first and last name again and for email address go ahead and put your email where you receive communications again it's probably the place where that docusign that promissory note came to before now i mentioned this at the start of the video but go ahead and check which draw you are applying for your first ppp loan doesn't matter when you got it it could be last year this year your first ppp loan is known as the first draw ppp loan so if you're applying for forgiveness for the second loan that you got you're going to go ahead and check the box for second draw ppp loan now just to be clear that sba ppp loan number is what the sba has for you attached to your loan it's usually on the signed approved loan documents which hopefully you have a copy of the only way to get that number is to get in touch with the lender so if you're watching this and you're thinking about applying for forgiveness get in touch with the lender call them send them a secure message email say you can't find it and you need to know where to look that next number the lender ppp loan number that's the number that the lender assigned to your loan like for their internal tracking so again just ask them for that too unless you see a lender loan number on there it's a good idea just to ask and get that information before it comes time to apply for forgiveness now i'm sorry if you don't have that information right now it's such a pain to have to go get that but to be honest with you that's probably the hardest part of filling out this application so let's move on up next they're going to ask for your ppp loan amount that is the amount that was deposited into your bank account so go ahead and put that amount down and you probably have a date attached right there in your statements so go ahead and put the date that the ppp loan was dispersed that's the date that it landed in your account now being that you are an independent contractor with no employees for this next part employees at time of loan application put one some people feel like they need to put zero no put one and then the same thing employees at time of forgiveness application put one and just to be clear anybody you pay to do like extra side work for you they're not your employee unless you have them w-2 so if you're not paying them via a w-2 then don't consider them your employee that's kind of for future reference as well now let's talk covered period the rules changed three times there used to be an eight-week covered period and then they gave you the flexibility to use a 24-week cover period and right now the latest legislation says that you can choose anywhere between an 8 and 24 week covered period now trust me that's confusing so the best guidance i could offer here is to just put down the 24 week covered period i am not going to be the first one applying for forgiveness like rushing to do it after your covered period you have 10 months to apply for forgiveness and then the lender has a couple of months to process it so does the sba so i just don't want to be like the first one through the door instead there's probably going to be this wave of forgiveness applications i'm just going to ride that wave and i think most people should be in that same boat as well so with that being said if for some reason you're like well i only paid myself over let's say 10 weeks yes you can put 10 weeks but i wouldn't put less than that you received 2.5 months worth of what's called owner's compensation and you're allowed to pay yourself a hundred percent so logically when these lenders are looking at forgiveness applications they're going to expect you to have paid yourself over 2.5 months or approximately 10 weeks or so now you can argue with me down below in the comments but i'm telling you that sometimes these lenders don't know what's going on so it's a good idea just to put the 24-week covered period here or if you have to rush it you just need to get this off your books off your plate put a 10 week covered period here because that's how much you've paid yourself over the course of those 2.5 months approximately 10 weeks okay leave this box blank this is only for people who receive loans of two million or more and these next two lines are where you're going to request the forgiveness amount because you're allowed to pay yourself a hundred percent i think that is the most straightforward way of doing it if you're not sure if you got the proper amount i do have a net income and gross income calculator down below you can sign up for one they're completely free you can check your own numbers but if your numbers were correct then you were allowed to spend on payroll costs aka paying yourselves 100 of the loan so it would be a good idea to write that there if you know your numbers are correct and then in terms of the amount that you are going to request for loan forgiveness again it's going to be that same number you paid yourself 100 of the correct number you're asking for 100 to be forgiven now there are a couple things that you have to initial and then sign down below here the first one says the borrower has complied with all the requirements of the paycheck protection program rules they go on to list what that means so long as you've followed the rules you can initial here up next they're saying that the information provided in the application is true and correct in all material aspects and that you understand that if you're doing something wrong that imprisonment and fines are a possibility so don't do anything wrong like that you can initial here and then down below they're going to ask you to sign and date it and print your name and title if you're the owner of your business you could just put owner i'm going to go ahead and show you these next two pages it's a demographic information that is optional so fill it in if you'd like to and then that next page is simply the instructions for the borrowers and they kind of walk you through what i just said so if you want to kind of print that out or have that next to you that might be a good idea as well okay when it comes time to apply for forgiveness hopefully it is a smooth process the lender set up a portal or you fill in this application and just send it off now it may take a couple of months like i said the lenders have some time the sba has some time but if your numbers were correct and you paid yourself properly you use the funds in an appropriate manner then everything should be forgiven so fingers crossed that is exactly how it works out for you i mentioned that i would talk about how to pay yourself properly if you're still wondering but this video is going on just a little long so i'll leave a link down below to an article that i wrote and continually update it provides a few ideas on how to create bank statements and documentation just to show how you use the money if and when the sba ever comes asking for that document they can ask for those documents by the way they reserve the right to ask for them for up to six years so i just think it's a good idea to get your documentation in order and have crystal clean statements when and if they ever came to ask for them let me know down below in the comments if you have any questions about the forgiveness process if you're new to the channel don't forget to hit subscribe and ring that notification bell alright as always i'm rich and until next time you

Channel: Rich Smith

Views: 50,889

Keywords: how to fill out ppp loan forgiveness application form 3508s, ppp loan, ppp, ppp loan forgiveness, ppp loan forgiveness self employed, ppp loan forgiveness application, ppp loan forgiveness 3508s, ppp loan forgiveness calculation, ppp loan forgiveness application step by step, form 3508s, revised form 3508s, 3508s form, ppp loan forgiveness application for self employed, how to apply for ppp forgiveness, ppp loan forgiveness rules, ppp update, ppp form 3805s

Id: JEOBOe6AXdM

Length: 12min 7sec (727 seconds)

Published: Tue Apr 27 2021