A. Qualifying borrowers can use Form 3508EZ, the simplified version of Form 3508, to apply for PPP forgiveness.
You can use this form if you meet one of the following requirements:
Are self-employed and have no employees.
Have employees but did not reduce their wages by more than 25%, did not reduce employee numbers, and did not cut employee hours OR have employees but did not reduce wages by more than 25% and could not operate as normal because of reduced business activity due to COVID-19 health guidance compliance.
Like Form 3508, the EZ version requires borrowers to calculate payroll and nonpayroll costs. But because of the eligibility requirements to use the form, you do not need to adjust for FTE and salary reductions.
Form 3508EZ is three pages long and broken down into the following parts:
- Calculation form
- Signature/authorization form
- Demographic information form (optional)
A. Form 3508S is the simplest PPP loan application form available. Only borrowers who took out loans that were $150,000 or less can use the form.
The Consolidated Appropriations Act expanded who can use this version of Form 3508. Originally, only borrowers who took out loans of $50,000 or less could use it. Now, borrowers who took out loans of $150,000 or less can use it.
Affiliate businesses (e.g., businesses with common management, stock ownership, and identity of interest) that took out a combined total of PPP loans of $2 million or more cannot use Form 3508S.
Form 3508S requires fewer calculations and less documentation than Forms 3508 and 3508EZ. If you took out a loan of $50,000 or less, your forgiveness amount won’t be reduced if you decreased your FTE employee levels or wages.
This form is two pages long and broken down into the following parts:
- Signature/authorization form
- Demographic information form (optional)
A. Any borrower who received a Paycheck Protection Program loan can use Form 3508 to apply for forgiveness. But because it is the most complex form, you should only use this form if you do not qualify to use Form 3508EZ or 3508S.
Form 3508 is five pages long and broken down into the following parts:
Calculation form
Signature/authorization form
Schedule A
Schedule A worksheet
Demographic information form (optional)
Why so long? Form 3508 requires significantly more calculations than the other forms because it has an additional calculation for borrowers who reduced their employee numbers and/or salaries. And like Form 3508EZ, the regular 3508 requires borrowers to calculate their payroll and nonpayroll costs using the 60% / 40% rule.
Borrowers who reduce their full-time equivalent employees, employee salaries, or both also reduce their PPP forgiveness amount. This form has a calculation for determining how much you reduce your loan forgiveness amount by for these adjustments.
