News and Information

SBA Releases PPP Loan Forgiveness Instructions

The Small Business Administration (SBA) has released Paycheck Protection Program Loan Forgiveness Application Forms and Loan Forgiveness Instructions. This includes SBA Form 3508 and the new Form 3508EZ.

• SBA Form 3508EZ may be used for forgiveness if at least one of the three following bullet points applies to the borrower: 
  • Is self-employed with no employees OR
  • Did not reduce annual salary or hourly wages by more than 25% during the covered period compared to the period January 1-March 31, 2020 AND did not reduce the number of employees or average paid hours of employees between January 1 and the end of the covered period, OR
  • Did not reduce annual salary or hourly wages by more than 25% during the covered period compared to the period January 1-March 31, 2020, AND was unable to operate during the covered period at the same level of business activity as before February 15, 2020, due to COVID-19-related health & safety requirements.
• The “covered period” is the 24-week (168-day) period beginning on the PPP Loan Disbursement Date; or if the disbursement date was before June 5, 2020, the borrower may elect to use an 8-week (56-day) covered period. In no event may the covered period extend beyond December 31, 2020.