Form Mortgage Loan Application Forgiveness
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FAQ
Paycheck Protection Program Loan Forgiveness Application Form 3508EZ.
WHO CAN USE FORGIVENESS APPLICATION FORM 3508EZ? 1. Are you a self-employed individual, independent contractor or sole proprietor who had no employees and did not include any employee salaries in calculating average monthly payroll when you applied for your PPP loan? If YES, use Form 3508EZ.
Forgiven PPP loans are not considered cancellation of debt income, and as such, you should not report these loan proceeds on your tax return. This applies to all taxpayers, whether your business is a sole proprietorship, single-member LLC, partnership, multi-member LLC, corporation, or any other entity type.
Direct forgiveness borrowers must use the SBA forgiveness portal. The questions you will be asked in the portal correspond to those asked on SBA form 3508S. For borrowers whose lender is not participating, you must apply through your lender.
In 2023, the PPP Loan Forgiveness Program will be available to eligible borrowers. This program will forgive all or part of the loan balance for those who meet the criteria. The forgiveness will be based on a borrower's use of the funds for eligible expenses such as payroll, rent, and utilities.