The Paycheck Protection Program (PPP) was designed to provide “forgivable” loans to keep you in business and your workers on the payroll. There were several rounds of funding in 2020 including March 17 Coronavirus Aid, Relief, and Economic Securities (CARES) Act, June 5 PPP Flexibility Act, and most recently Economic Aid Act on December 27 which allows you to apply for a first or second forgivable loan. So even if you already got a PPP loan, apply for a second loan if you qualify and need the money! The deadline for applications is March 31, 2021.

Your PPP loan can be forgiven as long as you complied with the rules and used 60% of the money for payroll purposes, and the remainder on mortgage interest, rent, and utilities (within the covered period). Here is information to help you understand how to apply and get your PPP loan forgiven.

All PPP loans are intended to be forgivable, meaning they do not have to be repaid. But you must comply with the Small Business Administration (SBA) rules in order for your loan to be forgiven. Also forgiveness is not automatic.

You must apply for forgiveness with the bank or lending institution where you got your PPP loan. Forgiveness is dependent on compliance with the rules, but the rules are different depending on when you got your loan (on or before June 5, 2020 – CARES Act; or after June 5 – PPP Flexibility Act). New rules are expected for 2021 loans.

The key to getting your PPP loan forgiven is to understand which SBA application to use and then to apply for forgiveness with the bank where you got your PPP loan. You will be applying electronically through your bank’s PPP loan portal. All of the information on the SBA forms will have been loaded onto your bank’s website. So familiarization with the SBA forms will make it easier for you to understand the information that your bank needs. Simply put, your bank will need the same information as the SBA forms. Here is some information to help you determine which form to use.

Form 3508S

PPP Loan Forgiveness Application Form 3508S is only one page. You are allowed to use this form if your loan amount is $50,000 or less. There are no calculations to perform. You must read and agree to 7 certifications. If you agree, you electronically initial each one and then electronically sign it (online with your bank). NOTE: The Economic Aid Act of December 27, 2020 increased the allowable maximum from $50,000 to $150,000. It is anticipated that SBA will either revise this form or replace it to reflect the higher amount.

Form 3508EZ

PPP Loan Forgiveness Application Form 3508EZ is a shortform application for PPP Loan Forgiveness. To be eligible to use Form 3508EZ, you must meet one of the following criteria:

• You are self-employed and have no employees; OR
• You did not reduce the salaries or wages of your employees by more than 25%, AND did not reduce the number or hours of your employees; OR
• You experienced reductions in business activity as a result of health directives related to COVID-19, AND did not reduce the salaries or wages of your employees by more than 25%.

Form 3508EZ is only slightly more complex than 3508S. It is a two-page application with some very simple calculations at the bottom of page 1. The certifications are similar to 3508S, and you will have to certify one of the above bullet items.

FORM 3508

PPP Loan Forgiveness Application Form 3508 is the longform application for PPP Loan Forgiveness. This is the form that is required if you do not qualify to use form 3508S or 3508EZ.

Your bank will have a questionnaire once you logon, using your PPP loan username and password. The answers you provide will lead you to the right SBA form (3508S, 3508EZ, or 3508).

How Brooks Makes the Process Easy for You

To make it easier for you, we have loaded all 3 forms and the instructions for each on our COVID19 webpage. We have also developed PPP Loan Forgiveness webinars that explain how the SBA rules apply to a typical fire equipment distributor (FED). We have taken time to explain how the rules apply to you, including fulltime equivalents (FTEs), compensation, safe harbors, and exceptions for certain circumstances.

Answers to Your Questions

Here are five essential questions and the answers that will help you with the PPP Loan Forgiveness process.

Q. Why do I need to know about SBA Forms 3508S, 3508EZ, and 3508, if I am applying electronically through my bank?
A. Your bank uses the information on those forms as the basis for electronic submittals. Familiarization with the forms helps you make informed decisions and enables you to maximize your PPP Loan Forgiveness amount.

Q. How does my bank get me to the right form?
A. Once you are logged onto your bank’s webpage, you will answer a series of questions. Based on your answers, you will then be electronically completing form 3508S, 3508EZ, or 3508.

Q. Does EIDL Advance get deducted from PPP loan forgiveness?
A. As of December 27, EIDL Advance is no longer deducted. If you already applied for forgiveness and EIDL Advance was deducted, your bank is required remit that amount to you.

Q. An employee voluntarily resigned, refused an offer to be rehired, and I was not able to find a suitable replacement. Will I be penalized for that situation?
A. No, you will not need to take a reduction in your loan forgiveness amount for that situation. You will also not need to take a reduction if an employee was fired for cause and no suitable replacement was found.

Q. What happens if part of my PPP Loan is not forgiven?
A. It remains a loan and must be repaid. Loans issued on or before June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. PPP loans have an interest rate of 1%. Payments are deferred 10 months after the end of the covered period (either 8 weeks or 24 weeks).

Q&As Developed by SBA

The SBA has also developed two question and answer (Q&A) documents. Although one is PPP Loans and the other is PPP Loan Forgiveness, both Q&A documents provide valuable information that will help you understand the intricacies of PPP Loan Forgiveness. Both of these Q&As are now available to download from our COVID19 webpage. The Brooks COVID19 webpage is intended to be a one-stop-shop.

Remember, you will be applying for forgiveness through the bank where you received your PPP Loan and not directly with the SBA. You have probably received an email from your bank informing you that they have begun accepting PPP Loan Forgiveness applications. But before you apply, check out the articles, video webinars, SBA forms, and other information on the Brooks COVID site www.brooksequipment.com/COVID19/. We have developed and collected the resources that you will need to get forgiveness for your PPP Loan, provided you have complied with the SBA rules.

Portable fire extinguishers are installed throughout buildings for use by building occupants. In order for fire extinguishers to work properly, they need to be maintained. Here is what you need to know to make sure the fire extinguishers in your building are working properly and are ready to use during a fire.

Monthly Fire Extinguisher Inspections

A fire extinguisher inspection is a quick check that the extinguisher is in its designated place (on an extinguisher hanger or in an extinguisher cabinet), it has not been discharged, and there is no obvious physical damage that will prevent its operation. This visual inspection can be conducted by just about anyone with minimal knowledge of fire extinguishers, including building maintenance staff. But only a trained service technician is qualified to correct deficiencies that are discovered during inspections. For convenience, monthly inspections are typically recorded on a tag attached to the fire extinguisher.

"The Fire Code requires annual servicing of fire extinguishers, which must be conducted by a trained service technician.”

Fire Extinguisher Servicing

The Fire Code requires annual servicing of fire extinguishers, which must be conducted by a trained service technician. The technician will perform the routine fire extinguisher maintenance according to the manufacturers’ service manual, including pressure checks and recharging as needed.

Fire Extinguisher Service Company

In addition to performing work on fire extinguishers, found to have problems during monthly inspections, fire extinguisher technicians perform the annual servicing of your extinguishers, according to the Fire Code. You can find your fire extinguisher service company by looking at the annual maintenance tag attached to any fire extinguisher on your property. The company’s phone number and other contact information is on the tag.

Fire Extinguisher Maintenance Records

Every fire extinguisher will have a tag that provides a record of the maintenance performed on the extinguisher. To make sure your fire extinguishers are up-to-date, periodically check these tags. If you notice a fire extinguisher with an outdated annual service tag, call your service company! Only fire extinguishers that have monthly inspections and annual maintenance are considered to be reliable and ready for use in the event of a fire.

Grab the Nearest Fire Extinguisher and Use It!

No matter where you are, you should have confidence that the correct fire extinguisher is nearby. That is because the technician has evaluated each area and installed fire extinguishers to match what can burn. So in the event of a fire, grab the nearest fire extinguisher and use it! At the same time, all other building occupants should be evacuating the premises and the fire department should be notified. Remember to only use fire extinguishers for fighting fires. Makeshift means are never a substitute.

Knowing that care and servicing has been done, in accordance with your local Fire Code, will help ensure these firefighting tools will be operational when they are needed most, during a fire emergency.

NFPA Standards

NFPA 10, Standard for Portable Fire Extinguishers, NFPA 13, Standard for the Installation of Sprinkler Systems, and NFPA 72, National Fire Alarm and Signaling Code are being revised. The Second Draft Reports for each document will be posted January 20, 2021. The 2022 editions of NFPA 10, 13, and 72 will be available mid-2021.

NFPA 17, Standard for Dry Chemical Systems, NFPA 17A, Standard for Wet Chemical Systems, and NFPA 96, Standard for Ventilation Control and Fire Protection of Commercial Cooking Operations are up for revision. The first step in the revision process is to solicit for public input. The public input deadline for each of these standards is June 1, 2021, and the First Draft Report will become available online on March 22, 2022.

Washington DC and Extinguishers

The Washington, D.C. Construction Code Coordinating Board voted to approve a final emergency regulation to remove the 906.1 fire extinguisher exception from their fire code. This is the culmination of efforts by the Fire Equipment Manufacturers Association (FEMA), Government Relations Committee (GRC). Brooks is a member of FEMA/GRC.

US Military and Extinguishers

As reported earlier, Brooks and FEMA continue to push for the Department of Defense (DoD) to comply with the National Defense Authorization Act, which requires that the Uniform Facilities Criteria (UFC) to include requirements for portable fire extinguishers in the same manner, as required by state fire codes. Recent communications indicate that the DoD is getting close to complying with the law.