updated ppp forgiveness application
The SBA and Treasury have released revised forgiveness applications for PPP loans.
By Matthew Lyon
JUNE 17, 2020
The SBA and Treasury issued a revised forgiveness application for PPP loans, as well as publishing a new EZ application for certain borrowers. The revised application comes after the signage of the Paycheck Protection Program Flexibility Act of 2020 into law on June 5. The new applications give the borrower the option to use either the 8-week period (if the loan was made before the Flexibility Act) or the 24-week period. We will be looking further into the details over the coming weeks and will share what we learn about completing these forms.

Click here for revised forgiveness application (Form 3508)
Click here for revised forgiveness application (Form 3508EZ)

New changes
The revised application is divided into four sections. The first section (Lines 1-4) takes your payments for payroll, mortgage interest, rent, and utility payments during the covered period. The second section (Lines 5-7) accounts for adjustments in wages and FTE equivalents. The third section (Lines 8-10) calculates your potential forgiveness amount. The fourth section (Line 11) is your forgiveness amount. The forgiveness amount is the smallest of Lines 8-10.

The new EZ application applies to borrowers who:

  • 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%.

The new EZ application is less intensive than the original application, requiring fewer calculations and documentation. The new and revised applications are designed to make the forgiveness process more efficient for both lenders and borrowers. We suggest you print, understand, and share this forgiveness application with anyone who has received, or will receive, PPP funds along with your account personnel.

For more information about the Paycheck Protection Program, visit our website for official SBA documents about the program, along with other important COVID-19 related SBA changes. Our website also includes webinars that we have participated in as well as updates about future webinars we will be hosting.

No one knows what the next few weeks or months may hold, but what I can assure you is that we will be here to continue assisting small businesses to lead the country’s growth in the coming years.

Diamond Financial Services