Yesterday, June 17th, the Small Business Administration (SBA) released a revised PPP loan forgiveness application and interim final rule as a result of the Paycheck Protection Flexibility Act of 2020 signed earlier this month.
The SBA released two new applications and instructions to apply for forgiveness of PPP loans.
- PPP Loan Forgiveness Application Form 3508, Revised June 16, 2020
- PPP Loan Forgiveness Application Form 3508EZ
The new EZ PPP loan forgiveness application requires fewer calculations and less documentation than the full application. It may be used for borrowers that can check at least one of the three boxes below:
- Self-employed and has no employees;
- Did not reduce the annual salaries or wages of any employee by more than 25% during the covered period and did not reduce the number of employees or the average paid hours of their employees;
- Did not reduce the annual salaries or wages of any employee by more than 25% during the covered period and was unable to operate during the covered period at the same level of business activity due to COVID-19
If a borrower is unable to check one of the boxes above, they cannot use the SBA Form 3508EZ and instead must apply for forgiveness of the PPP loan by using SBA Form 3508. The applications can be submitted to the lender either on paper or electronically.
Contact our offices if you need assistance determining which PPP loan forgiveness application is right for you.