PPP – Updated Loan Forgiveness Forms

SBA has released two new PPP Loan Forgiveness forms: 3508EZ and 3508. Here are links to the two forms

https://www.sba.gov/document/sba-form–paycheck-protection-program-loan-forgiveness-application-instructions-borrowers-6-16-2020

https://www.sba.gov/document/sba-form-paycheck-protection-program-ez-loan-forgiveness-application-instructions-borrowers-6-16-2020

The EZ form requires less documentation and fewer calculations than previously required.

The EZ form applies to borrowers who meet any one of these three criteria:

1. Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.

2. Did not reduce salary or wages for any employee by more than 25% and did not reduce the number of hours of their employees (excepting laid-off employees who refused an offer to return).

3. Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.

SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act (PPPFA) and issued a new interim final rule that implements changes made by the PPPFA. This is a link for the updated information on the PPP Program

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program