The Small Business Administration (SBA) released updates to the Paycheck Protection Program loan forgiveness application. A majority of the updates reflect the changes from the Paycheck Protection Program Flexibility Act (Flexibility Act). You can find our alerts regarding the Flexibility Act here and the SBA’s Updated Interim Final Rule here.
Additionally, the SBA released Form 3508EZ, which is a streamlined version of the forgiveness application for eligible borrowers that requires fewer calculations and documentations than the full PPP Loan Forgiveness application. Borrowers are eligible to file Form 3508EZ if:
- The Borrower is self-employed, an independent contractor, or sole proprietorship and has 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%.
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.