PPP Flexibility Act: What You Need to Know
Congress passed a bill changing certain elements of the Paycheck Protection Program (PPP) loan program, which the President signed into law on Friday, June 5th 2020.Changes to PPP loan forgiveness requirements include:
- Expanding the period during which the borrower can spend the funds from 8 weeks to 24 weeks
- Extending the timeframe for businesses to restore payroll that was reduced during the pandemic through December 31, 2020 (extended from the original June 30 deadline)
- Decreasing the percentage of the funds that must be spent on payroll costs from 75% to 60%
The bill also gives loan recipients a longer period of time to repay the loans and lets companies receiving loan forgiveness defer payroll taxes.
PPP Loan Forgiveness Application
Note: If you’re self-employed, you can save time applying for PPP forgiveness with the new EZ Form. Here’s how to fill out the simplified SBA Form 3508EZ. This guide has been updated to reflect the newest version of the form, released June 16th, 2020.
The SBA released the official PPP Loan Forgiveness Application also know as Form 3508 and gave critical clarification on documentation requirements on May 20, 2020. The application is to be completed by the small-business borrower and submitted to the bank or lender who processed their PPP loan.
Third-Party Online Application Tool
After seeing the complexity of PPP loan forgiveness entrepreneur Mark Cuban, an Oklahoma community bank, and Arkansas FinTech collaborated to provide PPP borrowers a simple way to assess their PPP loan forgiveness potential, while also simplifying the application process for all small businesses.
PPP.BANK* is a free, secure resource for small businesses, non-profits, and sole proprietors across the United States who received a Paycheck Protection Program (PPP) loan and are now applying for forgiveness. This website automates the 11-page forgiveness application and results in a PDF that can be provided to the lender.
Keep in mind that the accuracy is dependent upon the information you provide, and the tool cannot guarantee any of the analysis or results produced. You are ultimately responsible for ensuring the accuracy of the data. So make sure to check that your information is correct before submitting to your lender.
*PPP.BANK is a third-party tool. Vast Bank gives no warranty or guarantee as to its accuracy.
Additional PPP Loan Resources & Links
Helpful links on the Paycheck Protection Program (PPP) that is part of the CARES Act.
- Download Form 3508EZ as of 6-17-2020
- Download the instructions for Form 3508EZ as of 6-17-2020
- Download the revised Form 3508 as of 6-17-2020
- Download the instructions for Form 3508 as of 6-17-2020
- Read the interim final rule as of 6-17-2020
- US Treasury PPP Site
- SBA PPP Website
- CARES Act - Congress Bill
- CARES Act - US Treasury
What to Expect from Vast Bank
Vast Bank is not yet accepting applications for forgiveness as we await the final version of the loan forgiveness application to be available. We do encourage you to familiarize yourself with the current loan forgiveness application and Interim Final Rule. We will continue to update you on the latest guidance from the SBA.