3508EZ Forgiveness Application

3508EZ Form:

Borrowers can apply for forgiveness of your First or Second Draw Paycheck Protection Program (PPP) Loan using SBA Form 3508EZ if your PPP loan amount is more than $150,000 and you can meet at least one of the two criteria below. If your loan amount is $150,000 or less, please use SBA Form 3508S.

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 PPP Loan and a Second Draw PPP loan.
For a Second Draw PPP Loan in excess of $150,000, you must submit a loan forgiveness application for your First Draw PPP Loan before or simultaneously with the loan forgiveness application for your Second Draw PPP Loan, even if the calculated amount of forgiveness on your First Draw PPP Loan is zero.

Form 3508EZ applies to borrowers who meet either Criteria 1 or Criteria 2 below:

CRITERIA 1

CRITERIA 2

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period. (For purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000.); AND
The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. • 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).
- 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).
- Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused.

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period. (For purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000,); AND
The Borrower was 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.

Forgiveness Processing Steps - Please Read Carefully
Step 1: Download and Complete the Following Items.
Once downloaded, complete both the EZ PPP Application and collect the appropriate documentation found in the EZ Loan Forgiveness Checklist.
3508EZ APPLICATION FORM and INSTRUCTIONS
3508EZ DOCUMENT CHECKLIST

Step 2: Submit your Application and Supporting Documentation.
Upload your completed Application and Loan Forgiveness Checklist documentation to the Secure File Portal below.

Step 3: AFNB will Review Items for Completeness.
In order to ensure accuracy, AFNB will review all items prior to submitting to the SBA.

Step 4: AFNB will determine if your loan is eligible for forgiveness based on SBA's Guidelines for Loan Forgiveness Guidelines.
AFNB will notify you if your loan qualifies for loan forgiveness.
Note: Due to the volume of PPP loans it may take up to 60 days for AFNB to notify you if your loan is eligible for loan forgiveness.

Step 5: Submission to the SBA.
AFNB will submit your application to the SBA. Your Loan Officer will contact you once SBA issues it's decision.
Note: Approval may take SBA up to 90 days after AFNB submits your forgiveness application.
Submit 3508EZ Application

AFNB cannot provide financial, legal or tax advice, including interpretation of the SBA’s rules or guidance for loan forgiveness, or how they may apply to the circumstances of your business. Please seek financial, legal or tax advice from your financial, legal and/or tax professional(s). Please note that the information above is taken directly from the SBA and/or the SBA Paycheck Protection Program Loan Forgiveness Application, and is posted here solely for your convenience. It is not intended to be, and should not be considered, comprehensive or definitive. Please be sure to consult the SBA and/or U.S. Treasury PPP websites for information related to loan forgiveness and the PPP program. Guidance and rules directly from the SBA and/or the U.S. Treasury will supersede and control over any information below or in any FAQ posted here, to the extent of any conflict.

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3508EZ Forgiveness Application

3508EZ Form:

Form 3508EZ applies to borrowers who meet either Criteria 1 or Criteria 2 below:

Forgiveness Processing Steps - Please Read Carefully

Step 1: Download and Complete the Following Items.

Step 2: Submit your Application and Supporting Documentation.

Step 3: AFNB will Review Items for Completeness.

Step 4: AFNB will determine if your loan is eligible for forgiveness based on SBA's Guidelines for Loan Forgiveness Guidelines.

Step 5: Submission to the SBA.