Update #3 – How Do I Qualify for Maximum Loan Forgiveness of the PPP Loan?

Lawyer sitting at table with gavel and document

Last Friday, the SBA released SBA Form 3508 (5/20) “Paycheck Protection Program Loan Forgiveness Application” (click here). This 11-page form is what borrowers will be required to submit to their lenders in order to seek loan forgiveness. SBA Form 3508 includes a “Calculation Form,” a “Certification,” a “Schedule A,” a “Schedule A Worksheet,” and an optional “Borrower Demographic Information Form.” 

While some of this form is self-explanatory, other parts are more difficult, and missteps can carry steep penalties. It is particularly important to note that the “Certification” page requires an authorized representative of the company to certify the following when seeking loan forgiveness:

• The information provided in this application and the information provided in all supporting documents and forms is true and correct in all material respects. I understand that knowingly making a false statement to obtain forgiveness of an SBA-guaranteed loan is punishable under the law, including 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a Federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.

• The tax documents I have submitted to the Lender are consistent with those the Borrower has submitted/will submit to the IRS and/or state tax or workforce agency. I also understand, acknowledge, and agree that the Lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of ensuring compliance with PPP requirements and all SBA reviews.

• I understand, acknowledge, and agree that SBA may request additional information for the purposes of evaluating the Borrower’s eligibility for the PPP loan and for loan forgiveness and that the Borrower’s failure to provide the information requested by SBA may result in a determination that the Borrower was ineligible for the PPP loan or a denial of the Borrower’s loan forgiveness application.

While these “Certifications” and corresponding penalties should not cause fear in any borrower, they should be taken seriously.

Contact Counxel Legal Firm

We would be happy to answer any questions you have about qualifying for PPP Loan Forgiveness and/or assist you in reviewing your loan forgiveness application when the time comes. Feel free to contact us at (480) 744-6621 or at request@counxel.com. Don’t forget to check out the good things that others are saying about the services they received from Timothy Coons on Google.

This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Counxel Legal Firm. Please contact request@counxel.com or (480) 744-6621 to request specific information for your situation.

*Conveniently located off the 101 Freeway and the US 60 in the middle of Phoenix, Scottsdale, Tempe, Chandler, Gilbert, Mesa, and Queen Creek!

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