SBA Streamlines PPP Forgiveness for Loans of $50,000 and Under (October 9, 2020):
The Small Business Administration released a much-anticipated, streamlined loan forgiveness application for Paycheck Protection Program loans totaling $50,000 or less. While eligible loans account for just 9% of overall PPP loan dollars, they amount to about two-thirds of all PPP loans.
The two-page forgiveness application, Form 3508S, includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain the documentation supporting their certifications for six years, but do not need to submit it.
SBA streamlines PPP forgiveness application for many PPP borrowers (June 17, 2020):
The U.S. Small Business Administration 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 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 (excepting 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. The 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 that implements changes made by the PPPFA. We encourage you to review the Instructions for Form 3508EZ to determine if this application for forgiveness is right for you and your business.
Download Form 3508EZ.
Download the Instructions for Form 3508EZ.
Download the Form 3508S.
Download the Instructions for Form 3508S
Download the revised Form 3508.
Download the Instructions for Form 3508.
Click here for other borrower resources for the Cares Act.
Source: Iowa Bankers Association eNewsletter – 6/17/20