The Small Business Administration has released a shortened “EZ” Paycheck Protection Program loan forgiveness application form—Form 3508EZ—that can be found here. Form 3508EZ is a streamlined update to the SBA’s prior loan forgiveness application and meant to be simpler and more efficient to complete. However, the abbreviated form can only be used by a borrower that:
- Applied for a PPP loan as self-employed, an independent contractor, or a sole proprietor with no employees and did not include any employee salaries in the computation of its loan application;
- Did not reduce salary or hourly wages of any employee by more than 25%, and did not reduce the number or hours of its employees (excepting laid off employees who refused an offer to return to work); or
- Did not reduce salary or wages of 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.
For any borrower that does not satisfy at least one of these conditions and thus cannot use the EZ form, the SBA has also issued an updated long-form PPP loan forgiveness application, found here, that reflects recent changes made by way of the PPP Flexibility Act.
Should you have any questions about the SBA’s updated loan forgiveness forms, or would like to participate in Michelman & Robinson’s “PPP Loan Analysis Program,” do not hesitate to contact us at your convenience.
This blog post is not offered, and should not be relied on, as legal advice. You should consult an attorney for advice in specific situations.