SBA PPP Forgiveness Application Process
It is time to start considering the steps that must be taken to qualify for loan forgiveness under the SBA Paycheck Protection Program (PPP). Please take a few minutes to become familiar with the recent changes in PPP forgiveness guidelines and the application forms which are now available below. Please click the link below which will take you to the announcement letter where you will find valuable information regarding the PPP loan forgiveness requirements.
We hope you will find this information helpful as you navigate through the PPP loan forgiveness application process.
SBA Streamlines PPP Forgiveness Application for Many Borrowers
The Small Business Administration has released a three-page "EZ" Paycheck Protection Program loan forgiveness application that requires less documentation and fewer calculations than previously required. The Form 3508EZ applies to borrowers who meet any of these the following 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. 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.
Below are links to PDF copies of the 3508EZ, 3508 and the associated instructions
Form 3508EZ Instructions
Form 3508 Instructions
PPP Loan Forgiveness and CARES Act Tax Aspects Webinar Recording
If you missed the webinar earlier this month presented by Moss Adams in conjunction with Northern California National Bank related to Payroll Protection Program (PPP) Loan Forgiveness and CARES Act Tax Aspects, please click on the link below to view a recording of the webinar.