Clients of Alternative Capital Solutions,
The PPP loan forgiveness program is just about ready to begin. Our bank partner, First Freedom Bank has directed us to begin accepting applications and working on the forgiveness documentation for our clients. The forgiveness requests can begin on the 10th of August and we would like to get all of your documentation completed and ready to submit by that day.
There are two separate programs that must be used, a long form which is SBA Form 3508 and the short form which is SBA Form 3508EZ. The 3508EZ is obviously the less intrusive form and we hope that most of our clients will qualify to use this form. Either way we will be assisting you in completing your forgiveness request.
Both SBA Forms are attached as well as a needs list from First Freedom Bank.
To qualify for the EZ Form you must be able to answer “yes” to one of the three questions that are on the information sheet contained in the SBA Form 3508EZ. Here is a simple breakdown of the questions to be considered:
- The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application.
- The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the covered period or the alternative payroll covered period when compared to the period January 1, 2020 through March 31, 2020. You also cannot have reduced the number of employees.
- This will be the same as number 2 but instead of not reducing the number employees it is that you could not operate as usual due to the Covid restrictions.
Please read through the attachments. The credit analyst that processed your PPP loan will be your point of contact here at ACS and will assist you in determining if you need the EZ Form or if you have to complete the long form. Please be aware that the final decision on which form you must use can be overridden by the SBA and will be out of our control. In some cases, we will not know this information until after we have submitted for forgiveness, if the SBA through First Freedom Bank, rejects the short EZ form and requires your firm to complete the long form.
We look forward to getting your pplications completed, submitted and your loans forgiven.
Thank you for choosing ACS to partner with for your financial needs during this time. Please remember that we are a full-service solutions provider and through a sister company, do on occasion loan our own funds when warranted and necessary.