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Choosing Between PPP Loan Forgiveness Forms

This information explains the different Paycheck Protection Program loan forgiveness form options. Borrowers can can use this guide to choose the right form for their situation.

Form 3508S

  • The S form is the simplest forgiveness form, requiring the fewest calculations and least amount of documentation.
  • You may use Form 3508S if your loan amount was $150,000 or less for an individual First or Second Draw PPP Loan.
  • Note that each PPP loan must use a separate loan forgiveness application form. You cannot use one form to apply for forgiveness of both a First Draw and Second Draw PPP loan.
  • Form 3508S & Instructions

Form 3508EZ

  • The EZ form is another simplified form option with fewer calculations than the full form.
  • Note that each PPP loan must use a separate loan forgiveness application form. You cannot use one form to apply for forgiveness of both a First Draw and Second Draw PPP loan.
  • You may use Form 3508EZ if you meet ALL criteria in either one of the following situations:

Situation 1

  • Your loan amount must be more than $150,000 (for loans of $150,000 or less, use Form 3508S)
  • You must not have reduced the number of your employees between Jan 1, 2020 and the end of your covered period
    • You may 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, the last day of the Covered Period)
  • You must not have reduced the average paid hours of employees between Jan 1, 2020 and the end of your covered period​
    • You may ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused
  • You must not have reduced salary or wages by more than 25% during your covered period compared to the most recent full quarter before the covered period
    • Employees earning more than $100,000 per year are not counted for the purpose of this criterion

Situation 2

  • Your loan amount must be more than $150,000 (for loans of $150,000 or less, use Form 3508S)
  • You must not have reduced salary or wages by more than 25% during your covered period compared to the most recent full quarter before the covered period.
    • Employees earning more than $100,000 per year are not counted for the purpose of this criterion
  • You must have been unable to operate during 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 between March 1, 2020 and 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.

Form 3508EZ Link

Form 3508 (Full Form)

  • If your business does not qualify to use the above S or EZ options, you’ll need to use the full application (form 3508). The full form requires more calculations and documentation, but can be used for all PPP situations.
  • Form 3508 & Instructions