Stay tuned for more information about PPP changes under the new bill. The businesses that I know of who have reduced headcount have done so due to the COVID restrictions. SBA loans are subject to SBA eligibilty guidelines. EIDL Advance Amount: If the Borrower received an Economic Injury Disaster Loan (EIDL) advance, enter the amount. To qualify, borrowers must: be self-employed AND have no other employees; OR This “EZ Form” is designed to reduce the required calculations for those that qualify. Treasury Secretary Steven T. Mnuchin said, We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. Suite 105 The three versions of the form include a regular Form 3508, Form 3508EZ, and 3508S.Â, The SBA and Treasury released Form 3508 on May 15, 2020. I know a few businesses that have not been impacted by the COVID restrictions. Here’s how to fill out the simplified SBA Form 3508EZ.For loan amounts less than $50,000, you can use the new Form 3508S released on October 8. This new form, form 3508EZ, also known as the EZ form, is a shorter version of the initial PPP loan forgiveness application form. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? This form is two pages long and broken down into the following parts: And for borrowers still looking for an even easier application process, there’s still hope. Unless you qualify to use the EZ or S versions, you must apply with the regular Form 3508.Â, The difference between the forms lies in the calculations you need to do. The 3508EZ form is for borrowers who received PPP loans of more than $50,000. The Paycheck Protection Program (PPP) is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating banks, including Bank of America, must follow. PPP Loan Forgiveness Calculation Form. Download the 3508EZ form here. Effective October 8, 2020, Paycheck Protection Program (PPP) borrowers receiving forgivable loans of $50,000 or less can use a streamlined forgiveness application. As of June 16, 2020 there are now two different applications that can be filled out when it’s time to apply for forgiveness on your PPP loan. But you need to meet certain criteria to be eligible for the EZ form. There are many document requirements related to the forgiveness program for a small business PPP loan. Get a free trial of our software to streamline the way you get payroll information for the future! The restrictions seem to be an acceptable reason not to rehire as well. SBA PPP Loan Forgiveness Application FORM 3508S SBA PPP Loan Forgiveness Instructions FORM 3508S Please visit the SBA site for additional information regarding PPP forgiveness. Elmsford, New York 10523, Telephone: +1 (914) 722-6901 Form 3508S requires fewer calculations and less documentation than Forms 3508 and 3508EZ. Do not submit this Checklist with your SBA Form 3508EZ. If you did reduce employee headcount despite not being impacted or if you did reduce salaries by more than 25% use the full forgiveness application. Form 3508 is five pages long and broken down into the following parts: Why so long? While it still requires small businesses to provide documentation and complete a series of calculations, it is considerably less demanding. The form you use depends on certain factors such as: Take a look at details about each form as well as their eligibility requirements to determine how you can apply for PPP loan forgiveness. Â, Any borrower who received a Paycheck Protection Program loan can use Form 3508 to apply for forgiveness.Â, But because it is the most complex form, you should only use this form if you do not qualify to use Form 3508EZ or 3508S.Â. PPP Loan Forgiveness Calculation Form. With Patriot’s online payroll, you have access to all the payroll reports you want to grab the data you need. PPP Loan Forgiveness Calculation Form Coronavirus (COVID-19): Relief options and Additional Resources ... Paycheck Protection Program Loan Forgiveness Application. Don’t be. There are two applications that must be completed and submitted when requesting a Paycheck Protection Program loan forgiveness. Also, the Flexibility Act loosened the restrictions on FTE’s and payroll reduction – so this new form addresses that. PPP Loan Forgiveness Applications. The second step in the process is compiling all of the necessary documentation. However, there are three versions of Form 3508 out there.Â, Which Form 3508 is the one that you need?Â, The PPP provided forgivable loans to businesses impacted by COVID-19. A checklist for borrowers to determine if they can apply for forgiveness of PPP loans using SBA Form 3508EZ Updated 11-30-20 with new expiration date If you can check at least one of the form's three … Form 3508S: A borrower may use Form 3508S only if the total PPP loan amount received was $50,000 or less. Those are the 3508 applications and the new 3508EZ form. Borrowers have 10 months after the end of the covered period to submit for forgiveness. Answer: No. PPP Loan Forgiveness Application Form 3508EZ SBA Form 3508EZ (06/20) Page 2 By Signing Below, You Make the Following Representations and Certifications on Behalf of the Borrower: The Authorized Representative of the Borrower certifies to all of the below by initialingnext to each one. Form 3508 EZ PPP Loan Forgiveness Application. You can read more about the PPP loan here and we have more information on how the Flexibility Act Changed the PPP terms here. Paycheck Protection Program . However, a borrower that, together with its … Only borrowers who took out loans that were $50,000 or less can use the form. We continue to favor additional legislation to further simplify the forgiveness process.”. One of them—Form 3508EZ—is much shorter and simpler than the other. So on October 8, the SBA and Treasury released Form 3508S for qualifying borrowers.Â. But now, you’re in the home stretch. If you’re eligible to use the 3508EZ form when applying for PPP loan forgiveness, you’ll get to save some time and energy compared to those who have to fill out the regular 3508 form. If you did reduce employee headcount despite not being impacted or if you did reduce salaries by more than 25% use the full forgiveness application. Qualifying borrowers can use Form 3508EZ, the simplified version of Form 3508, to apply for PPP forgiveness. Fax: +1 (914) 722-6902. Try our payroll software in a free, no-obligation 30-day trial. Complicated rules and unanswered questions left many people scrambling. Please review the application thoroughly. Download the 3508EZ form here.Download the 3508EZ form Instructions here. SBA Form 3508EZ is for borrowers with PPP loan amounts of more than $50,000—and, similar to Form 2508S, it’s a shorter, more streamlined application with fewer calculations than the full loan forgiveness application, SBA Form 3508. Suite 1208 Based on the timing of the first PPP loans, no PPP borrower has an eminent forgiveness application deadline in 2020. All Rights Reserved. SBA Form 3508 is the document PPP loan borrowers must complete to request loan forgiveness. Note: If you’re self-employed, you can save time applying for PPP forgiveness with the new EZ Form. How can I apply? The eligibility requirements are outlined for applicants on the U.S. Treasury and SBAwebsites. First, you have not have reduced compensation for any employee by more than 25%. At Bank of America, the Paycheck Protection Pr… • For Borrowers using SBA Form 3508EZ, and who checked only the second box on the checklist on page 1 of the instructions to the EZ PPP Loan Forgiveness Application, the FTE documentation must show the average number of FTE employees on payroll employed by the Borrower on January 1, 2020 and at the end After receiving a PPP loan, borrowers must apply for forgiveness through their lender by filling out the Small Business Administration (SBA) form and providing supporting documents. Could not return to full employment because your business could not operate at full capacity due to COVID-19 restrictions. This application was created using the Free PPP Loan Forgiveness Application Creator at Applyforppp.com Your completed PPP Loan Forgiveness Application (SBA Form 3508) starts on the following page. The latest guidance and revisions from the Treasury as of June 17, 2020 include a new “easy” PPP loan forgiveness form (Form 3508EZ) as well as clarification on how much owner compensation forgiveness may be applied for by individuals with self-employment income. As with all PPP loan forgiveness applications, you apply for forgiveness through your lender. Subject to credit approval and program guidelines. Most of the complexity in the standard form comes from calculating forgiveness adjustments due to FTE and salary reductions. You can use the EZ form if you meet two criteria. In addition, each borrower is required to retain (but not deliver) a number of supporting documents as part of the loan forgiveness proces s for six years. 2 West 45th Street, How to Complete the PPP Loan Forgiveness Application, Form 3508 is the most complicated of the three forms. On June 16, 2020, the SBA issued a simplified PPP Loan Forgiveness Application called the 3508EZ Form. You are a self-employed individual, an independent contractor, or a sole proprietor who had no employees when you applied for the PPP loan and did not include any employee salaries in calculating average monthly payroll. SBA PPP Loan Forgiveness instructions for FORM 3508 SBA PPP Loan Forgiveness Application FORM 3508EZ SBA PPP Loan Forgiveness instructions for FORM 3508EZ. Although the three versions of Form 3508 are different, they all begin by asking for the following business and PPP loan information: For full PPP forgiveness, you must meet a few requirements. 3508EZ – Only available if the borrower is able to certify to certain criteria in the application. This forgiveness application will be used by any borrower who cannot use Form 3508S or Form 3508EZ, or who chooses to fill out the full lengthier application. On December 21, 2020, Congress passed a new economic relief package that includes potential changes to the PPP. Not a customer? ELIGIBLE PAYROLL COSTS: Paid or Incurred: Borrowers are generally eligible for forgiveness for … If you’re using the EZ PPP loan forgiveness form, here is what you will need to submit, according to the SBA: PPP Loan Forgiveness Calculation Form 3508EZ; Payroll: Many business owners and financial advisors shared concerns about its complexity and rigid rules.Â, In response, Congress passed the PPP Flexibility Act of 2020 to make changes to the PPP, prompting the release of a revised Form 3508 on June 16. Form 3508S might not be the end of the line. Fears of a late-October PPP surprise came to the SBA’s attention because the program’s loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of “10/31/2020” in the upper-right corner. These applications are for reference only. Tried to return to full employment by December 31, 2020, but could not find qualified people who would accept your offer. Second you either restored all FTE’s OR could not restore FTE’s due to COVID-19 restrictions. However, they also haven’t had to reduce employees. You do not need to complete this application at this time, but may use it to guide your spending during the 8-week (56-day) period or the 24-week (168-day) period. Returned to full employment by December 31, 2020. Borrowers who reduce their full-time equivalent employees, employee salaries, or both also reduce their PPP forgiveness amount. The process of applying for loan forgiveness starts by contacting the Lender that is servicing your loan and getting the correct loan application form. But because of the eligibility requirements to use the form, you do not need to make adjustments for FTE and salary reductions. As of June 17, 2020, the SBA released two PPP Loan Forgiveness Applications. Worried about gathering all your documents to fill out Form 3508? A Borrower that, together with its affiliates, received PPP loans … SBA Form 3508 is the document PPP loan borrowers must complete to request loan forgiveness. Small business owners have certainly been through the ringer in 2020. What is the Paycheck Protection Program (PPP)? Here’s the bottom line on which form you should use: Keep in mind that, regardless of which version of Form 3508 you use, you must have supporting documentation to justify your loan forgiveness request. On June 16, 2020, the U.S. Small Business Administration (SBA) released a highly anticipated revision to its Form 3508 Paycheck Protection Program (PPP) Loan Forgiveness Application. © 2020 Rosenberg Chesnov. Free payroll setup to get you up and running and support to smoothly run payroll. page 4 of the Form 3508EZ Instructions for a listing of such documents . SBA Form 3508EZ (06/20) Page 2 . They also introduced a new form the EZ form which is significantly simpler then the full form. You’ve gotten the loan and just need to apply for forgiveness using Form 3508. The SBA and Treasury released Form 3508 on May 15, 2020. We are committed to providing timely updates regarding COVID-19. The Treasury Department updated the PPP loan application to account for the new reals established by the Flexibility Act. While applying for forgiveness may still seem daunting—- even with this simper form— the EZ form requires fewer calculations and less documentation for eligible borrowers. Affiliate businesses (e.g., businesses with common management, stock ownership, and identity of interest) that took out a combined total of PPP loans of $2 million or more cannot use Form 3508S. If you are looking for more information on the terms of the PPP loan check outy our other poses. SBA Releases Revised Form 3508 and New Form 3508EZ for PPP Loan Forgiveness: Brown Smith Wallace The three versions of the form include a regular Form 3508, Form 3508EZ, and 3508S. If you are looking for more information on the terms of the PPP loan check outy our other poses. To make things even easier for eligible borrowers, the SBA and Treasury also released Form 3508EZ.Â, But for months, there were still concerns about the forms. Download .pdf. PPP Loan Forgiveness Application Form 3508EZ By Signing Below, You Make the Following Representations and Certifications on Behalf of the Borrower: The Authorized Representative of the Borrower certifies to all of the below by If signed into law, the legislation would include renewed funding of $284 billion for the PPP, expanded eligibility, and second-time loans for qualifying businesses. The SBA has released the new PPP Loan Forgiveness Application Form 3508EZ, which is designed to streamline PPP forgiveness for certain businesses who qualify. The exact wording from the PPP 3508EZ application is: “The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.”. This form has a calculation for determining how much you reduce your loan forgiveness amount by for these adjustments. Download the 3508EZ form Instructions here, more information on how the Flexibility Act Changed the PPP terms here, Year-End Tax Planning Guide for Individuals, A tool for the times: build teams at a distance. 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