The SBA has released Form 3508 – Paycheck Protection Program Loan Forgiveness Application. This form and its supporting Schedule A is what is required to submit to your lender to apply for forgiveness of loan proceeds issued from the PPP.  You can access the application and its instructions using this link PPP Loan Forgiveness Application/Instructions.

BeanLab Assistance

If you have already engaged with BeanLab for analysis and forgiveness assistance, we will be reviewing the analysis and making adjustments, if necessary.  We’ll be following up with you directly providing any updates to the analysis that you will need to consider.  Should you decide to engage with us for Phase 2, the completion of the loan forgiveness application with supporting documentation, we can confirm the details at that time. 

If you have not already engaged with BeanLab, and If after reviewing the application you would like to engage with us to assist in forgiveness analysis and/or completing the application, please contact us as soon as possible at

New Items of Note and Reminders:


  1. The application will be submitted to your lender; however, the SBA will be responsible for reviewing the application and its supporting documentation.  The SBA will be making the forgiveness determinations.
  2. All reports and worksheets used for the calculation of Form 3508 and Schedule A must be retained for six years after the date of forgiveness or the date it is repaid in full. 

EIDL Considerations

  1. If you received an Economic Injury Disaster Loan (EIDL) Advance, the advanced amount will be subtracted from the calculated forgivable amount. 
  2. EIDL loan proceeds are to be used only for working capital (no loan restructuring) and you cannot use the funds for the same qualified expenses as submitted for PPP Loan Forgiveness.

Employee Considerations

  1. Full Time Equivalent (FTE) Reduction Exceptions – If  a)you made a good-faith, written offer to rehire an employee during your calculation period and it was rejected by the employee or b)you fired an employee for cause or c) they voluntarily resigned, these cases will not reduce the FTE requirements for full loan forgiveness.  
  2. Replacement employees can be used to satisfy the FTE requirements and their wages can be considered in forgivable payroll costs. 

Payroll Costs

  1.  The ‘Covered Period’ for payroll costs can be actual pay dates within the 8-week period or an ‘Alternate Payroll Covered Period’. 
  2. The ‘Alternate Payroll Covered Period’ to calculate the covered payroll costs uses the 8-week period that begins on the first day of the pay period following the disbursement of the PPP Loan, if your payroll schedule is bi-weekly or weekly.  Payroll must be incurred and/or paid during this alternate 8-week period (56 days).
  3. Payroll costs continue to exclude the employer portion of FICA taxes, but do include employer state and local taxes (same definition as payroll costs used for loan amount calculation).
  4. Owner payroll cannot exceed eight weeks’ worth of 2019 compensation and is, regardless, capped at $15,385. This is the maximum amount forgivable for an independent contractor/sole proprietorship.
  5. You will be required to provide third-party payroll service provider reports or payroll forms documenting individual wage reporting. This is also required for documenting full-time employee count or equivalents. 
  6. You will be required to provide cancelled checks or account statements verifying payments made during the covered period for amounts paid for employee health insurance and retirement plan contributions.  Covered payroll costs do not include employee contributions to health insurance and retirement plans.

Non-Payroll Costs Requirements

  1. 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 eligible interest payments (no prepayments are allowed). 
  2. 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. 
  3. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.  Utilities, as defined by the SBA, are a service for the distribution of electricity, gas, water, transportation, telephone or internet service.

The PPP program is unprecedented and extremely fluid. We are monitoring the situation and will be sure to keep you updated with any other confirmed information we receive.