The Paycheck Protection Program (PPP) loan forgiveness application process has been confusing for business borrowers, to say the least. On Wednesday, the Treasury Department and Small Business Administration attempted to help make things easier with a new, streamlined EZ application for PPP loan forgiveness.
The new application form comes as a result of the PPP Flexibility Act, signed into law June 5, 2020.
Borrowers seeking PPP loan forgiveness now have two forms to use (so long as at least 60% of their loans were used for payroll): the full, five-page form or the new, three-page EZ form.
EZ forms are limited to use by:
- Self-employed workers
- Businesses that did not lower wages/salaries by more than 25% AND did not reduce the number of employees or hours worked by employees during the covered period
- Businesses that faced a Covid-19-related reduction in business activity AND did not reduce wages/salaries by more than 25% during the covered period
The deadline for applications for PPP loans is June 30, 2020. Reach out to us if you need help applying for funding, or for loan forgiveness if you’ve already received funds.
Links to key forms and instructions:
Updated Loan Forgiveness Application – Form 3508: https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
Updated Instructions for Form 3508: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Instructions_1_0.pdf
New Loan Forgiveness Application – Form 3508EZ: https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf
New Instructions/requirements for Form 3508EZ: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf
