Payroll Protection Program (PPP) Loan Forgiveness Explained
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).
There are two forms available for borrowers to use to apply for forgiveness, Form 3508 and the Form 3508EZ.
Borrowers can use the new EZ application if they meet the following requirements.
- “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%.”
Topic: Payroll Protection Plan (PPP) Loan Forgiveness
Summary: Payroll Protection Program (PPP) Loan Forgiveness Explained
Key Learning Objectives and Actionable Insights:
- Application Overview
- Schedule Completion
- Application Completion
- Safe Harbor Tests
- Other Tips and Considerations