As of June 17, 2020, the SBA released two PPP Loan Forgiveness Applications. Form 3508S requires fewer calculations and less documentation than Forms 3508 and 3508EZ. As of 12/22/20, the bill has not been signed into law by the president. Borrowers must use Forms 3508 to not just request loan forgiveness, but also to determine the amount of forgiveness.Â, So … which Form 3508 do you need for PPP forgiveness?Â, Form 3508EZ and S are simplified documents for eligible employers and solopreneurs. 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. But you need to meet certain criteria to be eligible for the EZ form. 2 West 45th Street, PPP Loan Forgiveness Best Practices ... 3508S – Only available if the principal amount of the loan was less than $50,000. 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. The second step in the process is compiling all of the necessary documentation. Paycheck Protection Program . These applications are for reference only. PPP Loan Forgiveness Calculation Form. On June 16, 2020, the SBA issued a simplified PPP Loan Forgiveness Application called the 3508EZ Form. New York, New York 10036, Telephone: +1 (212) 382-3939 Form 3508S might not be the end of the line. 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. Stay tuned for more information about PPP changes under the new bill. If you are looking for more information on the terms of the PPP loan check outy our other poses. Subject to credit approval and program guidelines. Not a customer? Borrowers have 10 months after the end of the covered period to submit for forgiveness. SBA Form 3508 is the document PPP loan borrowers must complete to request loan forgiveness. Do not submit this Checklist with your SBA Form 3508EZ. Also, the Flexibility Act loosened the restrictions on FTE’s and payroll reduction – so this new form addresses that. The process of applying for loan forgiveness starts by contacting the Lender that is servicing your loan and getting the correct loan application form. Form 3508 EZ PPP Loan Forgiveness Application. This “EZ Form” is designed to reduce the required calculations for those that qualify. This form is two pages long and broken down into the following parts: And for borrowers still looking for an even easier application process, thereâs still hope. Worried about gathering all your documents to fill out Form 3508? For more information on filling out the regular 3508, read our help article, â, Taxpayer identification number (e.g., EIN), Disbursement date (when you received the loan), Number of employees at time of loan application, Number of employees at time of forgiveness application, Economic Injury Disaster Loan (EIDL) advance amount, Use it for eligible expenses (60% of the loan for payroll costs and 40% for mortgage interest, rent, and utility costs), Not reduce employee wages by more than 25%, Whether you reduced employee salaries and headcountÂ, Have employees but did not reduce their wages by more than 25%, did not reduce employee numbers, and did not cut employee hours. 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. This form has a calculation for determining how much you reduce your loan forgiveness amount by for these adjustments. Only borrowers who took out loans that were $50,000 or less can use the form. Free payroll setup to get you up and running and support to smoothly run payroll. Many business owners and financial advisors shared concerns about its complexity and rigid rules. PPP Loan Forgiveness Applications. Most of the complexity in the standard form comes from calculating forgiveness adjustments due to FTE and salary reductions. 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. At Bank of America, the Paycheck Protection Pr… 3508 – The general form required if the borrower doesn’t qualify for either of … By Office of Capital Access. Note: If you’re self-employed, you can save time applying for PPP forgiveness with the new EZ Form. The Paycheck Protection Program (PPP) was a lifeline many business owners were willing to grab, but there were some strings attached. page 4 of the Form 3508EZ Instructions for a listing of such documents . All Rights Reserved. We are committed to providing timely updates regarding COVID-19. I know a few businesses that have not been impacted by the COVID restrictions. Complicated rules and unanswered questions left many people scrambling. How can I apply? 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. Answer: No. Effective Nov 30, 2020. While it still requires small businesses to provide documentation and complete a series of calculations, it is considerably less demanding. First, you have not have reduced compensation for any employee by more than 25%. As with all PPP loan forgiveness applications, you apply for forgiveness through your lender. © 2020 Rosenberg Chesnov. EIDL Advance Amount: If the Borrower received an Economic Injury Disaster Loan (EIDL) advance, enter the amount. 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 … • 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 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. SBA loans are subject to SBA eligibilty guidelines. Paycheck Protection Program (PPP) EZ Loan Forgiveness Application Form SBA Form 3508 is the document PPP loan borrowers must complete to request loan forgiveness. Youâve gotten the loan and just need to apply for forgiveness using Form 3508. 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. Small business owners have certainly been through the ringer in 2020. Fax: +1 (914) 722-6902. Form 3508 requires the most calculations, Form 3508EZ requires less calculations, and Form 3508S is nearly calculation-free (cue the celebration).Â. Donât be. 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. PPP Loan Forgiveness Application Form 3508EZ. SBA Form 3508S A BORROWER MAY USE THIS FORM ONLY IF THE BORROWER RECEIVED A PPP LOAN OF $50,000 OR LESS. Form 3508EZ is three pages long and broken down into the following parts: Form 3508S is the simplest PPP loan application form available. But now, youâre in the home stretch. Returned to full employment by December 31, 2020. And like Form 3508EZ, the regular 3508 requires borrowers to calculate their payroll and nonpayroll costs using the 60% / 40% rule.Â. The 3508EZ form is for borrowers who received PPP loans of more than $50,000. 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. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? The Treasury Department updated the PPP loan application to account for the new reals established by the Flexibility Act. 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. You can read more about the PPP loan here and we have more information on how the Flexibility Act Changed the PPP terms here. Suite 1208 If you took out a loan of less than $50,000, your forgiveness amount wonât be reduced if you decreased your FTE employee levels or wages. ELIGIBLE PAYROLL COSTS: Paid or Incurred: Borrowers are generally eligible for forgiveness for … Form 3508 requires significantly more calculations than the other forms because it has an additional calculation for borrowers who reduced their employee numbers and/or salaries. If you are looking for more information on the terms of the PPP loan check outy our other poses. 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. There are two applications that must be completed and submitted when requesting a Paycheck Protection Program loan forgiveness. 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. Tried to return to full employment by December 31, 2020, but could not find qualified people who would accept your offer. They also introduced a new form the EZ form which is significantly simpler then the full form. 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. 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. However, they also haven’t had to reduce employees. SBA PPP Loan Forgiveness instructions for FORM 3508 SBA PPP Loan Forgiveness Application FORM 3508EZ SBA PPP Loan Forgiveness instructions for FORM 3508EZ. 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. 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 you did reduce employee headcount despite not being impacted or if you did reduce salaries by more than 25% use the full forgiveness application. However, a borrower that, together with its … Second you either restored all FTE’s OR could not restore FTE’s due to COVID-19 restrictions. 3508EZ – Only available if the borrower is able to certify to certain criteria in the application. 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. 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. 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.”. One of them—Form 3508EZ—is much shorter and simpler than the other. How to Complete the PPP Loan Forgiveness Application, Form 3508 is the most complicated of the three forms. Elmsford, New York 10523, Telephone: +1 (914) 722-6901 Based on the timing of the first PPP loans, no PPP borrower has an eminent forgiveness application deadline in 2020. So on October 8, the SBA and Treasury released Form 3508S for qualifying borrowers.Â. The businesses that I know of who have reduced headcount have done so due to the COVID restrictions. Form 3508S: A borrower may use Form 3508S only if the total PPP loan amount received was $50,000 or less. We continue to favor additional legislation to further simplify the forgiveness process.â. Please review the application thoroughly. 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. Try our payroll software in a free, no-obligation 30-day trial. Download the 3508EZ form here. The eligibility requirements are outlined for applicants on the U.S. Treasury and SBAwebsites. Borrowers who reduce their full-time equivalent employees, employee salaries, or both also reduce their PPP forgiveness amount. 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. There are many document requirements related to the forgiveness program for a small business PPP loan. PPP Loan Forgiveness Calculation Form Coronavirus (COVID-19): Relief options and Additional Resources ... Paycheck Protection Program Loan Forgiveness Application. 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. PPP LOAN FORGIVENESS APPLICATION FORM 3508EZ INSTRUCTIONS FOR BORROWERS Checklist for Using SBA Form 3508EZ You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using thisSBA Form 3508EZ if you can check at least one of the three boxes below. This new form, form 3508EZ, also known as the EZ form, is a shorter version of the initial PPP loan forgiveness application form. Qualifying borrowers can use Form 3508EZ, the simplified version of Form 3508, to apply for PPP forgiveness. Or you are a corporation, you did not reduce salary by more than 25% for any employee earning less than $100,000 and you either: That final point is extremely broad and important. Fax: +1 (212) 382-3726, 565 Taxter Road, 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: Suite 105 Form 3508 is five pages long and broken down into the following parts: Why so long? PPP Loan Forgiveness Calculation Form. 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. 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. Download .pdf. Effective October 8, 2020, Paycheck Protection Program (PPP) borrowers receiving forgivable loans of $50,000 or less can use a streamlined forgiveness application. The three versions of the form include a regular Form 3508, Form 3508EZ, and 3508S. You can use this form if you meet one of the following requirements: Like Form 3508, the EZ version requires borrowers to calculate payroll and nonpayroll costs. Hereâs 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. You can use the EZ form if you meet two criteria. 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. 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. 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. To qualify, borrowers must: be self-employed AND have no other employees; OR What is the Paycheck Protection Program (PPP)? Please refer to . Download the 3508EZ form here.Download the 3508EZ form Instructions here. With Patriotâs online payroll, you have access to all the payroll reports you want to grab the data you need. SBA Form 3508EZ (06/20) Page 2 . The SBA has released the new PPP Loan Forgiveness Application Form 3508EZ, which is designed to streamline PPP forgiveness for certain businesses who qualify. 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. The restrictions seem to be an acceptable reason not to rehire as well. Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. SBA Releases Revised Form 3508 and New Form 3508EZ for PPP Loan Forgiveness: Brown Smith Wallace Can I use the 3508EZ form to apply for PPP loan forgiveness? 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. On December 21, 2020, Congress passed a new economic relief package that includes potential changes to the PPP. But because of the eligibility requirements to use the form, you do not need to make adjustments for FTE and salary reductions. The SBA and Treasury released Form 3508 on May 15, 2020. Get a free trial of our software to streamline the way you get payroll information for the future! A Borrower that, together with its affiliates, received PPP loans … 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. Those are the 3508 applications and the new 3508EZ form. If you meet two criteria have not been signed into law by the president there many... 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