While applying for forgiveness may still seem daunting—- even with this simper form— the EZ form requires fewer calculations and less documentation for eligible borrowers. The “EZ… PPP Loan Forgiveness Calculation Form Coronavirus (COVID-19): Relief options and Additional Resources. See page 1 of the SBA Application for Forgiveness EZ Instructions 2. There is one exception to the 25% salary reduction rule. Determine if you can use the SBA EZ Loan Forgiveness Application. The Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. Employee reimbursement can include benefit payments, such as health insurance, retirement savings, and unemployment insurance. If you used a third-party service provider, you can file reports from that provider instead of your bank account statements and tax forms. Copyright 2020 | All Rights Reserved | Workplace HCM Inc. | Privacy Policy. PPP LOAN FORGIVENESS APPLICATION FORM 3508EZ INSTRUCTIONS FOR BORROWERS Checklist for Using SBA Form 3508EZ You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using thisSBA Form 3508EZ if you can check at least one of the three boxes below. Borrower’s eligibility for the PPP loan and for loan forgiveness, and that the Borrower’s failure to provide information requested by SBA may result in a determination that the Borrower was ineligible for the PPP loan or a denial of the Borrower’s loan forgiveness application. Third-party payroll service provider … For this application, you'll need to know which traditional covered period you're eligible for and whether you want to use an alternative covered period. 12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better. If you are unsure, you should get independent advice before you apply for any product or commit to any plan. Fill out the form to the right and we will get in touch with you to schedule a meeting to walk you through all of the features that will help improve your business! Learn the New Government Guidelines for the PPP Loan Forgiveness Application. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Use this connection service to get paired with a loan you can use for business. SBA may direct a lender to disapprove the Borrower’s loan forgiveness application if SBA determines that … Alternatively, you can use a binary option of either 1.0 for anyone who is full time at 40 hours and 0.5 for anyone who works under 40 hours. Can you use the EZ form to apply for PPP forgiveness? Forgiveness is based on an annual salary of $100,000 per person. Effective Nov 30, 2020. To receive loan forgiveness, a borrower must complete and submit the Loan Forgiveness Application to the Bank. By Office of Capital Access. The 3508EZ form was conceived as a way for businesses with PPP loans of over $50K to reduce the amount of paperwork required to apply for forgiveness. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Potential forgiveness amount (add lines 1-4), Forgiveness amount (the smallest total between lines 5, 6, and 7). Forgiveness for the PPP loan is not automatic. Application. To determine if you qualify for the 3508S form, click here. Big banks approving only half the loans they used to — here’s how to get small business funding, Didn't reduce employee wages by more than 25% and didn't reduce hours during the covered period, Didn't reduce wages by more than 25% during the covered period and experienced financial losses as a result of coronavirus-related health directives, Federal tax filings that have been or will be reported to the IRS, State quarterly business and individual wage reports, Proof of contributions to health insurance and retirement plans, like receipts or account statements, Proof of mortgage interest payments, such as statements, receipts or an amortization schedule, Proof of rent or lease payments, like receipts, lessor account statements or a copy of your lease, Proof of utility payments, such as invoices, receipts, canceled checks or account statements, Proof of the number of full-time equivalent employees on payroll January 1 and at the end of the covered period. There are two PPP Loan Forgiveness Applications. PPP Loan Forgiveness Help Center. 1+ year in business, $250,000+ annual revenue, no open bankruptcies. PPP Loan Forgiveness Calculation Form. Go over your potential forgiveness amounts and write the lowest number in line 8. Understanding the Forgiveness Process. You're required to submit the following documents to your lender along with your EZ application form. EZ forgiveness might be less time consuming than your standard PPP forgiveness application. Interested in find out more about our platform? Did not reduce the hours for employees and did not reduce the salary by 25%. But make sure that your business is eligible before you figure it out. Find out how long you may have to wait. Request a demo and let us show you the power of our cloud-based technology that will help your company run more efficiently without the headaches. STEPS TO COMPLETE PPP LOAN FORGIVENESS APPLICATION BEFORE YOU BEGIN: 1. 600+ personal credit score, 1 year in business, $100,000+ annual revenue. EZ PPP Loan Forgiveness Application and Instructions. Do I submit the form to the lender or the SBA? And if you need more funding, read our guide to financing your business during the coronavirus outbreak to learn about other options. How long does it take to get disability insurance benefits? Other lenders with higher approval rates can help — but only if you have the cashflow to support repayments. finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. The new EZ PPP Loan Forgiveness Application (Form 3508EZ) can be used by borrowers who meet any of the three criteria detailed on page 1 of the EZ Application. This is where you disclose how much you spent on other eligible expenses: To calculate your forgiveness amount, you first need to add up three different potential forgiveness amounts. The PPP Loan Forgiveness Application Form 3508EZ, or EZ forgiveness, requires fewer calculations and documentation than the full forgiveness application. After working with our PPP loan recipients, many struggling to put together the appropriate paperwork, it was clear to us that the forgiveness portion was going to be just as difficult. Would you like to find out more about our products? You can use the EZ form if you meet two criteria. Both applications should be available through your lender. EZ PPP Loan Forgiveness Application and Instructions. Want to check out our intuitive cloud-based platform? Carefully review the SBA Provided Instructions. You can qualify for 100% forgiveness if you spent at last 60% of your loan on eligible payroll expenses. With loan terms that vary from 12 to 60 months, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender. Once you submit the completed application and all supporting documents directly to your lender, your lender will issue a decision to SBA on your loan forgiveness application not later than 60 days after receipt of a complete loan forgiveness application from you, as per the Interim Final Rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities (posted May 22, 2020). Otherwise, you can still qualify for a reduced forgiveness amount. Banner Bank QuickStep business loans review, finder.com is a financial comparison and information service, not a bank or Covid19 laws and health directives forced business shutdowns or reduction of force, however employees only loss 25% of their salaries at most. This is where you'll add up all eligible payroll expenses. Your business must have already received a PPP loan and meet one of the following criteria to qualify for EZ Forgiveness: If your business experienced a loss from government shutdowns, it can still qualify for the EZ forgiveness application, even if it had to cut employee hours. Determining the best application for your needs may be overwhelming, especially when working on reopening your business or implementing new CDC guidelines. You must apply for forgiveness, so the SBA and treasury know if you used the loan as directed, and not to expand your business or even hire new employees. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. A checklist for borrowers to determine if they can apply for forgiveness of PPP loans using SBA Form 3508EZ. In addition, specific categories are no longer required as part of the application. Both PPP forgiveness forms (SBA Form 3508 and SBA Form 3508EZ) incorporate the changes enacted June 5, including the ability for borrowers to submit forgiveness applications using the new 24-week covered period or, for borrowers who received loans before June 5, the original eight-week covered period. Employers electing 8 weeks may claim $15,383 per person, whether they are an employee or owner. The EZ Forgiveness Application is … We may receive compensation from our partners for placement of their products or services. What is an Economic Injury Disaster Loan (EIDL) and where do I find my advance amount received and application number if I received one? Updated 11-30-20 with new expiration date . So an employee making over $100,000 could have their salaries reduced all the way down to $75,000 without affecting your business's eligibility for EZ forgiveness.
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