Good news: The SBA has streamlined its PPP Forgiveness Application for many PPP borrowers.
The Small Business Administration (SBA) has released a 3-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of the following three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers.
Even if your organization does not meet any one of the above criteria, the SBA also updated the “regular” Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act, and issued a new interim final rule that implements changes made by the PPPFA.
And if you are having trouble falling asleep, you can read the interim final rule.
Okay, now what?
- First, no matter which form you use, be sure to read the instructions carefully— because the SBA requires documentation to verify the figures on your Forgiveness Application.
- We plan to provide an all-digital version of the Forgiveness Applicationsometime in the next few weeks, so you may choose to wait until then.
- However, if you are ready to submit your Forgiveness Application earlier, you can print, complete, sign and scan the paper version – and then submit it along with the required documentation by using the Secure File Upload page on our website beginning Monday, June 29.
At Savings Bank of Walpole, we remain committed to communicating with you on a timely basis. Our point person for the PPP forgiveness process is Andrew Richardson, Vice President, Commercial Loan Officer. If you have questions, please feel free to call Andrew at 603-355-1614, or send him an email.
Senior Vice President/ Senior Lender