SBA Releases Simplified PPP Forgiveness Application
Earlier today—June 17, 2020—the Small Business Administration (“SBA”) posted a new loan forgiveness application for recipients of a Paycheck Protection Program (“PPP”) loan. In May, the SBA released their first application, which I (very briefly) noted here.
The SBA updated the new application so as to align with the recent changes to the PPP legislation. Last week, I outlined those changes in a blog post, which can be found here. The updated PPP loan forgiveness application can be found here. The instructions for filling out the application can be found here.
The SBA also released what they are calling the “EZ Forgiveness Application.” The EZ Forgiveness Application is simpler than the “full” application discussed above. However, only certain borrowers may use the EZ Forgiveness Application, such as
1) self-employed borrowers with no employees,
2) borrowers who did not reduce their employees’ salaries or wages past the 25% threshold AND did not reduce the total number of employees or the total hours of their employees, and
3) borrowers who saw reductions in their overall business activity due to COVID-19 but did not reduce their employees’ salaries or wages past the 25% threshold.
You can view the EZ Forgiveness Application here.
PPP legislation and its corresponding procedures seem to evolve on a daily basis. Please remember to continually return to this blog as I continue to monitor and post about these daily developments. If you would like specific advice tailored to your situation, I am always available to answer your questions or concerns.