MECHANICSBURG, Pa. — AgChoice Farm Credit recently released two educational videos focused on applying for SBA Paycheck Protection Program (PPP) loan forgiveness. The videos, available at agchoice.com/SBALoans, explain the forgiveness process for PPP borrowers based on their loan size. AgChoice loan officers Larry Labowski and Heather Weeks discuss application and documentation requirements.
“Understanding which loan forgiveness application to use is the first step,” explained Weeks. “PPP borrowers with loans $150,000 or less should use SBA Form 3508S. The ‘S’ stands for ‘Simple,’ and borrowers with smaller loans should complete this form but are not required to submit any additional documentation.”
Borrowers with loans greater than $150,000 should complete SBA Form 3508 or 3508EZ, depending on their eligibility.
“Take time to check if you are eligible to complete the 3508EZ form,” said Labowski. “One main difference in the forms is the level of documentation you need to provide on Full Time Equivalents. The 3508EZ is a more streamlined forgiveness application.”
PPP borrowers must apply for forgiveness within 10 months after the end of their covered period. Most borrowers, using a 24-week covered period, will apply for forgiveness between six and 16 months after receiving their initial PPP loan. As an example, a borrower who received a PPP loan in April 2020 will need to submit a forgiveness application by July 2021.
After completing the appropriate forgiveness application and collecting any required documentation, submit all of the information to your PPP lender.
To learn more about PPP loan forgiveness and access AgChoice’s educational videos, visit agchoice.com/SBALoans.
AgChoice Farm Credit specializes in providing farm and country property loans and financial services to help customers confidently reach their dreams in 52 Pennsylvania counties and four West Virginia counties. Learn more at agchoice.com or 1-800-998-5557.
–AgChoice Farm Credit