The U.S. Small Business Administration (SBA) and the Department of the Treasury have unveiled an improved, streamlined Paycheck Protection Program (PPP) loan forgiveness application in conjunction with the PPP Flexibility Act of 2020. In addition to revising the full forgiveness application, the SBA also published a new EZ version for borrowers that:
- 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%; OR
- are self-employed and have no employees.
The simplified EZ application requires less documentation and fewer calculations for eligible borrowers. Details regarding the applicability of these provisions are included in the form’s instructions.
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.
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