The Paycheck Protection Program (PPP) loan forgiveness application is constantly evolving. This week, the Treasury Department and SBA released the new, streamlined EZ application for PPP loan forgiveness. As long as borrowers used at least 60% of the PPP loan proceeds to cover payroll expenses, borrowers can choose one of two forms for the loan forgiveness application: form 3508 (long form) or form 3508EZ (short form).
EZ forms are limited to use by:
Businesses that did not lower wages by more than 25% AND did not reduce the number of employees or hours worked by employees during the covered period
Businesses that did not reduce wages/salaries by more than 25% during the covered period AND faced a Covid-19-related reduction in business activity.
Links to key loan forgiveness application forms and instructions:
Instructions for Form 3508: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Instructions_1_0.pdf
Short Form – Form 3508EZ: https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf
Instructions for Form 3508EZ: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf