SBA, Department of Treasury announce new forgiveness applications for the Paycheck Protection Program
The U.S. Small Business Administration (SBA) and Department of the Treasury announced a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application Wednesday. The posting comes after the implementation of the PPP Flexibility Act of 2020, signed into law on June 5, 2020. Along with revisions to the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees
- 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
- 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%
The EZ application requires fewer calculations and less documentation for eligible borrowers. Both applications give borrowers the option of using the original eight-week covered period (if their loan was made before June 5, 2020) 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.
To help businesses better understand the loan forgiveness process, the U.S. Chamber of Commerce has provided a Guide to PPP Loan Forgiveness.