June 22, 2020
On June 17th, 2020, the U.S. Small Business Administration released a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application. In addition to revising the full forgiveness application (Form 3508), the SBA also published a new EZ version of the forgiveness application. The EZ application (Form 3508EZ), which requires fewer calculations and less documentation applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
Both applications give borrowers the options of using the original eight-week covered period (for loans made before June 5th, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
Remember, The Bank of San Antonio is working with a leading third-party software provider to automate and simplify the forgiveness application. Your banker will email you a link to our online portal to complete the loan application process.