Revised full forgiveness applications also available
On Wednesday, the U.S. Small Business Administration, in consultation with the U.S. Department of the Treasury, posted a revised, user-friendly Paycheck Protection Program loan forgiveness application implementing the PPP Flexibility Act of 2020. In addition to revising the full forgiveness application, the SBA also published a new “EZ” version of the forgiveness application applying to borrowers who:
√ Are self-employed and have no employees; or
√ Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; or
√ Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%
“This is great news for small businesses,” said SBA Regional Administrator Steve Bulger, who oversees agency operations in the Atlantic and Mid-Atlantic regions. “The EZ application requires fewer calculations and less documentation, which makes the process much less intimidating. I’m sure this will go a long way toward improving access and helping us distribute the remaining PPP appropriations to support small business owners and their employees.”
“The updated loan forgiveness application is a great way to make forgiveness more achievable for borrowers of all sizes,” said SBA Buffalo District Director Franklin J. Sciortino. “The easy-to-understand questions collect the necessary information while ensuring even more small business owners can apply for forgiveness.”
Details regarding the applicability of these provisions are available in the instructions to the new “EZ” application form. Both applications give borrowers the option of using the original eight-week covered period (if their loan was made before June 5) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.