On June 17, 2020, the SBA published a new Form 3508EZ version of the PPP loan forgiveness application that applies to qualifying borrowers. There are three possible ways for borrowers to qualify if they:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
See the SBA press release below for more details.
SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program
Wednesday, June 17, 2020
Press_Office@sba.gov, (202) 205-7036
WASHINGTON—Today, the U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
Price CPAs will continue to post significant updates from the SBA and the Treasury as they are available. In the meantime, please contact us if you would like assistance with the completion of your Loan Forgiveness Application or a review of your completed application based upon the most recent guidance available.