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Paycheck Protection Program Loan Forgiveness Applications

To receive PPP loan forgiveness, the borrower must complete and submit the Loan Forgiveness Application to the lender that originated or is servicing the loan.

Three SBA provided applications are available for Borrowers to leverage.

  1. SBA Form 3508
  2. SBA Form 3508EZ
  3. SBA Form 3580S

When to Use SBA Form 3580S

Borrowers can only use SBA Form 3580S if they received a PPP loan of $150,000 or less and, if applicable, the PPP loan total across all affiliates is less than $2 million.

When to Use SBA Form 3580EZ

Borrowers can use the SBA Form 3508EZ application if they meet at least one of the following. If unable to check one of the below statements, please leverage SBA Form 3508.

  • The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
  • The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent quarter before the Covered Period. For purposes of the statement, “employee” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000;

    AND

    The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020, if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020 (or, for a PPP loan made after December 27, 2020, before the last day of the Covered Period). Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused.
  • The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent quarter before the Covered Period. For purposes of the statement, “employee” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000;

    AND

    The Borrower was unable to operate between February 15, 2020 and the end of the Covered Period at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 (or, for a PPP loan made after December 27, 2020, requirements established or guidance issued before the last day of the Covered Period), by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

When to Use the Regular 3508 Form

Borrowers that you don’t meet the requirements of the S or EZ form must fill out the longer 3508 form.

For more information on loan forgiveness and other frequently asked questions, please review the Paycheck Protection Program FAQs.

Last Updated: 4/27/2021

Additional resources

This page was created by Thomson Reuters legal and tax experts to assist your small business. For further in-depth coverage, access free COVID materials via the following Thomson Reuters platforms.

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