Newtek Business Services Corp.
Dear PPP Borrower,

We wanted to inform you that the US government has made changes to the rules for PPP loan forgiveness and issued a new forgiveness application (SBA Form 3508S) for certain PPP borrowers. For PPP loans $50,000 or less*, borrowers are eligible to use the new form, which is intended to ease the forgiveness application process.

Benefits of using SBA Form 3508S:
  1. Requires fewer calculations and less documentation for eligible borrowers.
  2. Does not require borrowers to show the calculations used to determine their loan forgiveness amount.
  3. Borrowers are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages.
* Please note:  Borrowers who, along with their affiliates, received PPP loans totaling $2 million or more cannot use Form 3508S. If you are not eligible to use this form, you will be required to use SBA Form 3508 or 3508EZ.

To help you with the forgiveness application process, Newtek will send you an email notifying you that the new application is available to your existing portal very soon.

In the meantime, following is the SBA - required documentation that must be submitted along with the completed application:

Payroll Documentation: Documentation verifying the eligible cash compensation and non-cash benefit payments consisting of each of the following:
  • Bank account statements or third-party payroll service provider reports: documenting the amount of cash compensation paid to employees.
  • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period);
    • Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
    • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
  • Payment receipts, cancelled checks, or account statements: documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.
Non-Payroll Documentation: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.
  • Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.
  • Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.
  • Business utility payments: Copies of invoices from February 2020 and those paid during the Covered Period along with receipts, cancelled checks, or account statements verifying those eligible payments. 
As more specifics become available, we will make sure to share them with you. If you have any questions, please do not hesitate to reach out to hello@newtekone.com.

Newtek is committed to serving your financing needs with this important program.

Sincerely,

Newtek Small Business Finance