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“SIMPLIFIED” PPP Loan Forgiveness

Updated: Nov 17, 2020

Yesterday, October 8, the US Department of the Treasury provided new guidance and released a third version of the PPP Loan Forgiveness Application, Form 3508S, targeting PPP loans of $50,000 or less.  Borrowers holding PPP loans of $50,000 or less are exempt from any reductions in forgiveness due to:

  1. Reductions in full-time equivalent (FTE) employees, and

  2. Reductions to employee hourly wage rates and/or annualized salaries.

Borrowers should understand that this is not “automatic forgiveness” due to the fact that borrowers will still be obligated to file Form 3508S with their lender (or use their lender’s portal to file an equivalent form).  In comparison to Form 3508EZ, borrowers are not required to report payroll or non-payroll numbers when preparing Form 3508S.  This simplified form only requires the borrower to report:

  • Demographic information

  • SBA loan information

  • Covered period dates

  • Confirmation to the required representations and certifications listed in the forgiveness application.

PPP Loan Forgiveness Application Options Overview

As there have been many changes to the PPP loan forgiveness application process, with varying versions of forms and requirements, we have listed a recap of those options below to aid borrowers in making an informed decision:


Form 3508S – PPP Loan Forgiveness Application –SIMPLIFIED (Lin