On June 16, 2020, the SBA and Treasury Department released updated Paycheck Protection Program (“PPP”) loan forgiveness applications and instructions. The updated applications incorporate changes to the PPP that were recently implemented by the Paycheck Protection Program Flexibility Act.
There are now two forms of loan forgiveness applications – Form 3508 and Form 3508EZ. Form 3508EZ is a short-form application that can be used by certain borrowers, namely (a) self-employed individuals with no employees, (b) borrowers who did not reduce the salaries/wages of their employees by more than 25% or reduce employee headcount or hours, and (c) borrowers who did not reduce the salaries/wages of their employees by more than 25% and experienced a reduction in their business activity due to COVID-19 related health directives.
The forms can be found here: