Updates and revisions continue to be an evolving part of the newest round of PPP. To address the immense amount of change from this past week alone, I find it important to detail the most recent PPP-related information and beneficial resources that have come to light.
On Jan. 27, WBA added three PPP Loan Forgiveness Application Forms. Form 3508S, Form 3508EZ, and Form 3508 are all available for WBA members. WBA and FIPCO have also added a new PPP Addendum and PPP Maker Certification forms. These forms are being provided to the WBA Membership on a complimentary basis from FIPCO and are also available in the software from FIPCO.
WBA has released two FAQs highlighting new and updated information on PPP due to Economic Aid Act and Second Draw Loans. The information reflects new or revised FAQs due to new SBA Guidance or Instruction.
Finally, there are important issues to be aware of as you and your borrowers work through the loan process. The first issue deals with the “Number of Employees” box in the new First Draw and Second Draw loan applications. More information on the forgiveness rules (which remain largely unchanged from the 2020 PPP program) can be found starting on page 29 in recent FAQs issued by SBA.
The second issue relates to PPP borrowers that used a “draft” 2019 tax return to form the basis of the business’ PPP application last year and now as these same borrowers apply for forgiveness, a copy of the real 2019 tax return that was filed with the IRS is being shared with the lender, causing the lender to realize significant and meaningful discrepancies exist. More information on these issues can be found here.
This form of unparalleled communication with members and commitment to learning is what drives WBA as a trade organization. And as always, the most up-to-date material and information are available on our coronavirus resource page here. We at WBA know how challenging these changes can be, and we are proud to be your source of accurate and timely information as you help your borrowers navigate the newest guidelines.
I hope to see most of you virtually next week at our annual Bank Executives Conference which begins February 1. Just like the valuable information WBA has shared on PPP, this year’s conference will share valuable information for your team on culture and other banking issues. Being able to gather and learn from each other in this way is yet another example of the leadership present in our industry. I hope you can join us.
By, Alex Paniagua