Paycheck Protection Program
PPP Loan Forgiveness Application Form 3508EZ
SBA Form 3508EZ (06/20)
Page 2
EIDL Advance Amount: If the Borrower received an Economic Injury Disaster Loan (EIDL) advance, enter the amount.
EIDL Application Number: If the Borrower applied for an EIDL, enter the Borrower’s EIDL Application Number.
Payroll Schedule: Select the box that corresponds to your payroll schedule.
Covered Period: The Covered Period is either: (1) the 24-week (168-day) period beginning on the PPP Loan Disbursement Date,
or (2) if the Borrower received its PPP loan before June 5, 2020, the Borrower may elect to use an eight-week (56-day) Covered
Period. For example, if the Borrower is using a 24-week Covered Period and received its PPP loan proceeds on Monday, April 20,
the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4. In no event may the
Covered Period extend beyond December 31, 2020.
Alternative Payroll Covered Period: For administrative convenience, Borrowers with a biweekly (or more frequent) payroll
schedule may elect to calculate eligible payroll costs using the 24-week (168-day) period or for loans received before June 5, 2020
at the election of the borrower, the eight-week (56-day) period that begins on the first day of their first pay period following their
PPP Loan Disbursement Date. For example, if the Borrower is using a 24-week Alternative Payroll Covered Period and received
its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday,
April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered
Period is Saturday, October 10. Borrowers that elect to use the Alternative Payroll Covered Period must apply the Alternative
Payroll Covered Period wherever there is a reference in this application to “the Covered Period or the Alternative Payroll Covered
Period.” However, Borrowers must apply the Covered Period (not the Alternative Payroll Covered Period) wherever there is a
reference in this application to “the Covered Period” only. In no event may the Alternative Payroll Covered Period extend beyond
December 31, 2020.
If Borrower Received PPP Loans in Excess of $2 Million: Check the box if the Borrower, together with its affiliates (to
the extent required under SBA’s interim final rule on affiliates (85 FR 20817
(April 15, 2020)) and not waived under 15
U.S.C. 636(a)(36)(D)(iv)), received PPP loans with an original principal amount in excess of $2 million.
Forgiveness Amount Calculation (see Summary of Costs Eligible for Forgiveness below):
Line 1: Enter total eligible payroll costs incurred or paid during the Covered Period or the Alternative Payroll Covered Period.
To calculate these costs, sum the following:
Cash Compensation: The sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family,
medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for
dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period. For each
individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of
$100,000, as prorated for the Covered Period. For an 8-week Covered Period, that total is $15,385. For a 24-week Covered
Period, that total is $46,154 for purposes of this 3508EZ. You can only include compensation of employees who were
employed by the Borrower at any point during the Covered Period or Alternative Payroll Covered Period and whose
principal place of residence is in the United States.
Employee Benefits: The total amount paid by the Borrower for:
1. Employer contributions for employee health insurance, including employer contributions to a self-insured,
employer-sponsored group health plan, but excluding any pre-tax or after-tax contributions by employees. Do not
add employer health insurance contributions made on behalf of a self-employed individual, general partners, or
owner-employees of an S-corporation, because such payments are already included in their compensation.
2. Employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by
employees. Do not add employer retirement contributions made on behalf of a self-employed individual or general
partners, because such payments are already included in their compensation, and contributions on behalf of owner-
employees are capped at 2.5 months’ worth of the 2019 contribution amount.
3. Employer state and local taxes paid by the borrower and assessed on employee compensation (e.g., state
unemployment insurance tax), excluding any taxes withheld from employee earnings.
Owner Compensation: Enter any amounts paid to owners (owner-employees, a self-employed individual, or general
partners). For a 24-week Covered Period, this amount is capped at $20,833 (the 2.5-month equivalent of $100,000 per year)
for each individual or the 2.5-month equivalent of their applicable compensation in 2019, whichever is lower. For an 8-
week Covered Period, this amount is capped at 8/52 of 2019 compensation (up to $15,385).
Line 2: Enter the amount of business mortgage interest payments paid or incurred during the Covered Period for any business
mortgage obligation on real or personal property incurred before February 15, 2020. Do not include prepayments.