New PPP loan forgiveness applications and instructions released

Written on Jun 18, 2020

The Small Business Administration on June 16 released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria: 

  • Applied for the PPP loan as self-employed, an independent contractor, or a sole proprietor with no employees. 
  • Did not reduce salary or wages for any employee by more than 25% AND did not reduce the number or hours of their employees (ignoring laid-off employees who refused an offer to return). 
  • 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. 

The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. 

SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule on June 17 that implements changes made by the PPPFA. 

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