SBA Form 3508EZ – PPP EZ Loan Forgiveness Application -The eligibility of the borrower for debt forgiveness will be determined in line with the PPP rules and guidance provided by the SBA up to and including the date of this submission. If the SBA determines that the borrower’s loan forgiveness application should be denied, the SBA may instruct a lender to deny the borrower’s loan forgiveness application. It concludes that the borrower did not qualify for the PPP loan.
What Is SBA Form 3508EZ And How Does It Work?
If you are a first or second-draw Paycheck Protection Program (PPP) loan borrower, you may request loan forgiveness using the form provided. SBA Form 3508EZ from the Small Business Administration If the amount of your PPP loan is more than $150,000 and you can select at least one of the two boxes below, you are eligible. If your loan amount is less than $150,000, you should utilize SBA Form 3508S instead. This checklist should not be submitted with your SBA Form 3508EZ. Each PPP loan must be applied for using a different debt forgiveness application form (see below). You cannot use the same form to apply for forgiveness of both a debt and a debt forgiveness program. A First Draw PPP Loan, as well as a Second Draw PPP Loan, are available. A loan application for a second-draw PPP loan above $150,000 must be submitted. The loan forgiveness application for your first draw PPP loan should be submitted before or at the same time as the loan forgiveness application for your second draw PPP loan. Even if the estimated amount of forgiveness on your first draw PPP Loan is zero, you may still take out a second draw PPP Loan.
Instructions For Completing Form 3508EZ, Loan Forgiveness Calculation For PPP Loans:
Legal Business Name (“Borrower”)/DBA or Tradename (if applicable)/Legal Business TIN (EIN, SSN): -Legal Business Name (“Borrower”)/DBA or Tradename (if applicable)/Legal Business TIN (EIN, SSN): Fill in the blanks with the same information.
similar to the information on your borrower application form (SBA Form 2483, SBA Form 2483-SD, or lender’s equivalent).
The following information is required: business address, NAICS code, business phone, primary contact, and email address. Fill out the form with the same information as on your Unless there has been a change in the borrower’s address or contact information, the borrower application form should be used. If the NAICS code was not listed, If appropriate, the borrower application form should be completed following the business activity classification specified in IRS income tax filings. PPP Loan with First Draw or PPP Loan with Second Draw: Select the checkbox that corresponds to the PPP loan for which this forgiveness application is being submitted.
When Should You Utilize The 3508EZ Form?
The SBA Form 3508EZ form is for borrowers who obtained first- or second-draw PPP loans totaling more than $150,000 in the first or second draw period. If you are qualified to utilize the SBA Form 3508EZ form while asking for debt forgiveness under the PPP program, you will be able to save time and energy when compared to those who must fill out the conventional 3508 form. However, to be qualified to utilize the SBA Form 3508EZ, you must fulfill at least one of the three conditions listed below:
A PPP loan is available if you are a self-employed person, an independent contractor, or a single owner who did not have any workers at the time of your application.
If you earn less than $100,000 per year, you did not reduce the salaries or wages of employees earning less than $100,000 per year by more than 25%, and you did not lay off any full-time employees (other than those who could not be replaced with similarly qualified employees) or reduce the average number of hours that your employees worked.
The COVID-19 health and safety regulations imposed by federal agencies prevented you from increasing the compensation of workers earning less than $100,000 per year by more than 25%, and you were unable to function at the same level as you had before February 15, 2020.