The 3508EZ form is for borrowers that received first or second draw PPP loans of more than $150,000.
Also question is, what is the difference between 3508S and 3508EZ?
The difference between the forms lies in the calculations you need to do. Form 3508 requires the most calculations, Form 3508EZ requires less calculations, and Form 3508S is nearly calculation-free (cue the celebration).
Similarly one may ask, is EIDL loan forgiveness?
As a grant, the EIDL Advance doesn’t need to be actively forgiven. If you qualify for one and receive one, you don’t have to pay it back. New to the 2021 version of the EIDL grant: it no longer counts against the amount of money you can get forgiven from a PPP loan.
What documents are needed for PPP forgiveness?
Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
When should I apply for PPP forgiveness?
Most Paycheck Protection Program (“PPP”) borrowers are working toward full forgiveness of their PPP loans and are anxious to get this process started. A borrower generally may submit a loan forgiveness application any time on or before the maturity of the loan if the borrower has used all of the loan proceeds.
Can sole proprietors use 3508S?
If you are a sole proprietor, contractor, or self-employed, you are eligible to take owner compensation replacement (OCR). … You can calculate your OCR by taking 8/52 or 24/52 (depending on your covered period length) of your net income reported on line 31 of your Schedule C.
Who can file Form 3508S?
The key changes to Form 3508S are as follows:
- Borrowers with PPP loans of $150,000 (up from $50,000) or less can now use the form.
- The borrower’s NAICS code is now required.
- There is a new “check box” to indicate whether the application is for the forgiveness of a First Draw or Second Draw PPP loan.
What is the alternative covered period for PPP?
ELIGIBLE PAYROLL COSTS: Paid or Incurred: Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the 24-week (168-day) or 8-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”).
Who qualifies for PPP forgiveness?
For Borrowers
Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.
Are PPP loans forgivable?
Borrowers will have their loans forgiven if they use the money for designated expenses. … Mortgage interest, rent and utilities are also forgivable, up to 40% of the PPP loan. (Note that if your loan is forgiven, theses expenses covered by the loan are not tax-deductible, the IRS recently stated in Notice 2020-32.)
Can PPP be used to pay owners?
Yes, essentially! You can treat the Owner Compensation Replacement as personal income and use it however you want. With guidance allowing for 2.5 months’ worth of net or gross profit as OCR, that means your entire PPP loan could be used for personal purposes.
How do I apply for $10000 Eidl grant?
What are the new rules for PPP loan forgiveness?
In order to be forgiven, at least 60% of the loan amount needs to be used for payroll purposes. If less than 60% of your loan is used for payroll, you can still be eligible for forgiveness, with the amount you spend correlating directly to forgiveness.
Can I get Eidl grant and PPP forgiveness?
A: EIDL Grant and EIDL loan recipients may apply for and take out a PPP loan as long as there is no duplication in the uses of funds. Per the Consolidated Appropriations Act, 2021, the proceeds from an EIDL Grant will not be deducted from the loan forgiveness amount on the PPP loan.