Kabbage
icon September 01, 2021
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Kabbage (K Servicing) PPP Loan Forgiveness Application via Biz2X | Form 3508S

 

In this video, we show you step-by-step instructions on how to complete your Kabbage or K Servicing PPP loan forgiveness application via the Biz2X PPP loan forgiveness portal. This video is for self-employed, or businesses that received a PPP Loan via Kabbage of $150,000 or less and now they have to complete their PPP loan application via form 3508S.

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DISCLAIMER

This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. are providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.

Transcript

Hello from Freedom Tax Accounting, we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years. In this video we are going to show you how to complete your PPP forgiveness application if you got your PPP loans through Kabbage or K Servicing, and if your PPP loan is $150,000 or less. So, that’s important to know that if you got a PPP loan through Kabbage and K Servicing, that’s over $150,000 then this video is not for you, okay.

Now remember that if you need any help with your PPP loan forgiveness application, we are providing that as a service. This is our contact information. You can call our office to set up the initial consultation. And that way we can help you do your PPP forgiveness, okay.

Now, very important that in order to complete the PPP forgiveness application, if you got a PPP loan through Kabbage or K Servicing, you need to know your PPP loan number. And a lot of people who got the PPP through Kabbage do not know their PPP loan number. So, in order to get it, if you know it good, but if you don’t know your PPP loan number that you got through Kabbage, the way to find it is you go to the K Servicing website, which is K Servicing.com. Okay, and use you click “Sign In”. And basically, you log in with the email and password that you created to get the PPP loan through Kabbage. Okay, so you log into K servicing, they will send you a code via text for security code to get in. And then once you are in K servicing, you’re going to see this. If you only got a PPP one, you’re only going to see the first draw but if you got both PPP one and PPP two, you’re going to see both PPPs here.

Now if you see in this case, if you see the first draw that says a balance is zero, that means that this PPP loan has already been forgiven. But in this case, see that the second draw PPP loan still has a balance that means that this loan, this PPP two still has not been forgiven, okay. So, the one you’re going to get forgiven you have to do one at a time. If you have not received forgiveness for PPP one nor PPP two, you have to do one at a time. So, the one you’re going to ask for forgiveness, you click this little arrow, and that’ll take you to this page where on the bottom right, you see where it says “SBA note”, you click there, and that’ll take you to your SBA PPP loan note. And here see reassess “SBA loan number”, this number that appears here, that’s going to be your SBA loan number that you need to find out in order to complete the forgiveness. Also, if you don’t know what bank gave you the loan, you can find out where it says “lender”, this is the bank that gave you the loan.

Okay, now once you have your SBA loan number you will get an email from K Servicing that email is going to look like this; as a reminder that now you can apply for forgiveness, but you cannot apply for forgiveness via K Servicing website. K Servicing basically made a partnership with the Biz2X and you have to apply through the Biz2X portal. Now it says a link here which says the new K Servicing Biz2X dashboard. You click that link and that will take you to the PPP forgiveness portal. Basically, it will take you to this page. And here you put your email and the SBA loan number that you got from your SBA note. You click “Get started” and basically, you’re going to get a four-digit code via email. You get that email, you put that code here you click “Continue” and it takes you to this page okay. Basically, tells you your business name that PPP loan number to make sure that this is the correct PPP loan number, the PPP loan amount. And here, you need to click this blue button that says “complete forgiveness application”. When you click that, that’ll take you to this page, we’re basically here, this will automatically be filled out for you. You’re going to see your PPP loan number, you’re going to see that PPP loan amount, you’re going to see the date that you receive your PPP funds.

And now in this area, you need to put your covered period. Now remember that you have the option of choosing an eight-week covered period, up to 24-week cover period. So, we can be nine weeks, 10 weeks, 11 weeks, 12 weeks, but in most cases, that 24-week cover period is going to be the best option for you. Okay, especially if you’re self-employed, okay. So, here you put your covered period here is going to say the cover period date; this is the date that you got the funds and depending on how many weeks you put in this line, this number is going to change. Here if you got a PPP loan of over $2 million that in this case, this is not the case because this video is for PPP borrowers that only got $150,000 or less so you leave this in blank. Or you put no okay.

Now if you’re doing PPP forgiveness for PPP one, you click first drop PPP loan. If you’re doing forgiveness for PPP two, then you click the second drop PPP loan. Alright.

Now the next step, basically here you’re going to put your business legal name. If you’re self-employed here, you’re going to put your name here and the industry and NICS code. Here you put what type of work your business does. If you do not know your NICS code that is on your corporate tax return on their first page. If not, you just start writing. For example, let’s say that you’re a realtor. You click there and you write real estate. And that will bring up several options. So, you click the option that better fits the type of business that you do. Here, you put your tax ID number, if you’re self-employed, then here you put your social security number. But if you are working under a corporation or an LLC, here you put your business EIN number. Okay, this is already prefilled out for you. Here you’re going to put the number of employees at time of the loan application. And now, if you’re self-employed here, you’re going to put one, okay, and over here number of employees at time that you’re applying for forgiveness. And if you’re self-employed here you put one, okay. Business structure is going to give you several options. If you’re self-employed, you’re going to choose sole proprietor. If you’re not self-employed here you can put LLC member, CEO, President, whatever title you have on your business. Here is going to have your business address already filled out. And then you click the arrow at the bottom to move forward.

On the next page is going to ask for your name again, you put your name, the position in your business, if you’re self-employed, you put sole proprietor or if you’re not self-employed, you put CEO, director, partner, president, whatever position you have in your business, you put your email address.

Now the rest of the questions are optional. Okay, your demographic questions are optional. But if you want to fill it out, you can. It is going to ask you if you are a veteran or not your gender, your ethnicity and your race, but these demographic questions are optional, but you do have to put your name, your email address and your title. You click the arrow at the bottom right to move forward. Then you’re going to find this page. Here you’re going to see your PPP loan amount and, in this line, you’re going to put the PPP loan amount that you use for payroll costs. Now if you’re self-employed, you put the complete PPP loan amount for example, in this case, this person received 17,002 65. They were self-employed. So, the amount spent on payroll is 17,002 65. So, the complete PPP loan amount that’s what you put on payroll costs.

Now if you did not get a PPP loan as self-employed and your business does have payroll, then here you have to put the amount of PPP loan that you used on payroll inside the cover period that you used. If you did not use the complete PPP loan amount for payroll, then the remaining balance that you did not use for payroll, they are going to ask you then for proof for example rent, utilities. So, you have to prove how you use your PPP loan, all right.

And then you move forward. And the next page basically tells you that this is the form that is going to generate form 3508S. This is the PPP, forgiveness application form for PPP loans under $150,000. You click “Generate”, once you do that is going to take you to this page where you can view the application or download. If you click “View”, you are going to see “This is the PPP forgiveness application form 3508S”, okay, so confirm that the information here is correct. If you see any information that’s incorrect, go back and click “Regenerate”, okay, or go back to the arrows and fix anything that you need to fix. All right. So, then you click “Submit” when you click Submit, basically it asks you “Are you sure? Once you submit you will no longer be able to edit your application any further”. You click “Okay”. And then it takes you to this page where it says the form is completed. You can download it for your records and after this you need to wait a couple of days because then you’re going to get an email from K Servicing with a DocuSign link. So, you can electronically sign your application form. Once you sign it then they continue with the PPP forgiveness process. That is it. Okay.

Now once again, if you do not know or if you want help from us to complete your PPP loan forgiveness application, this is our contact information.

Now, one of the most common questions we get is how long does this process take right now. Once you complete the PPP forgiveness application form, through K Servicing, K Servicing has 60 days to process your PPP forgiveness application form and send it to the SBA. Now once the SBA gets the forgiveness form, the SBA has an additional 90 days to finish your PPP forgiveness. So, this is a process that can easily take five months. Okay, so this is it.

Thanks for watching this video. Remember to subscribe to our channel and share it with your relatives and friends if this informative video was of benefit to you.

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Remember that we are part of Freedom Group, a conglomerate of companies dedicated to providing quality services in accounting, taxes, financial consulting, insurance, real estate, business incorporation, among others.

As for your finances, we can help you with everything you need.

 

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