On June, 16, 2020, the SBA provided updated guidance and PPP Loan Forgiveness Application forms, including a new EZ version of the forgiveness application.
PPP Loan Forgiveness Application Form 3508EZ Instructions For Borrowers
PPP Loan Forgiveness Application Instructions For Borrowers
PPP Loan Forgiveness Calculation Form
PPP Loan Forgiveness Application Form 3508EZ
On June 5, 2020, the President signed the Paycheck Protection Program (PPP) Flexibility Act into law. Below are a few of the important highlights.
PPP Flexibility Act Highlights:
- Covered period extended until December 31, 2020, and gives employers 24 weeks, rather than 8 weeks (or December 31 if earlier) to spend PPP proceeds
- Payroll costs decrease from 75% to 60% with non-payroll portion of a forgivable covered loan amount raised from 25% to 40%
- Loan terms for any unforgiven portions to be repaid extended from 2 years to 5 years at 1% interest
- Loan forgiveness period extended from 6 months to within 10 months
- Period extended in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan
On May 29, 2020, InBank hosted a webinar ‘Managing Your PPP Loan’ covering PPP loan forgiveness, documentation and more. The webinar included a panel of InBank experts and was moderated by Bo Anderson of SBBO.
For additional PPP loan forgiveness questions, please contact:
Molly Kufeldt, SVP, Senior Commercial Banker: Molly.Kufeldt@inbank.com
Tom Francis, SVP, SBA & Commercial Banker: Tom.Francis@inbank.com
Viki Bunting, SBA Loan Assistant: Viki.Bunting@inbank.com
Bo Anderson, Attorney at Law, SBBO: BAnderson@sbbolaw.com
Additional Resources:
U.S. Department of Treasury: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
SBA: www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
InBank is a Member FDIC and Equal Housing Lender.
